Correlation Between Telkom Indonesia and Guangzhou
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Guangzhou at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Telkom Indonesia and Guangzhou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telkom Indonesia Tbk and Guangzhou RF Properties, you can compare the effects of market volatilities on Telkom Indonesia and Guangzhou and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Telkom Indonesia with a short position of Guangzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Guangzhou.
Diversification Opportunities for Telkom Indonesia and Guangzhou
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Guangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Guangzhou RF Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou RF Properties and Telkom Indonesia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Telkom Indonesia Tbk are associated (or correlated) with Guangzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou RF Properties has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Guangzhou go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Guangzhou
If you would invest 23.00 in Guangzhou RF Properties on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Guangzhou RF Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Guangzhou RF Properties
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Guangzhou RF Properties |
Telkom Indonesia and Guangzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Guangzhou
The main advantage of trading using opposite Telkom Indonesia and Guangzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Guangzhou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou will offset losses from the drop in Guangzhou's long position.| Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Cable One | Telkom Indonesia vs. Liberty Broadband Corp | Telkom Indonesia vs. Liberty Global PLC |
| Guangzhou vs. Air Products and | Guangzhou vs. Eastman Chemical | Guangzhou vs. Cleantech Power Corp | Guangzhou vs. Sphere Entertainment Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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