Correlation Between Telkom Indonesia and Immutep
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Immutep 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 Immutep 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 Immutep Ltd ADR, you can compare the effects of market volatilities on Telkom Indonesia and Immutep 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 Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Immutep.
Diversification Opportunities for Telkom Indonesia and Immutep
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telkom and Immutep is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR 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 Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Immutep go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Immutep
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Immutep. But the stock apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 2.09 times less risky than Immutep. The stock trades about -0.06 of its potential returns per unit of risk. The Immutep Ltd ADR is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Immutep Ltd ADR on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Immutep Ltd ADR or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Immutep Ltd ADR
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Immutep Ltd ADR |
Telkom Indonesia and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Immutep
The main advantage of trading using opposite Telkom Indonesia and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Lumen Technologies | Telkom Indonesia vs. Charter Communications |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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