Correlation Between Telkom Indonesia and Immatics
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Immatics 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 Immatics 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 Immatics NV, you can compare the effects of market volatilities on Telkom Indonesia and Immatics 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 Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Immatics.
Diversification Opportunities for Telkom Indonesia and Immatics
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Telkom and Immatics is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV 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 Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Immatics go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Immatics
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 1.02 times more return on investment than Immatics. However, Telkom Indonesia is 1.02 times more volatile than Immatics NV. It trades about -0.15 of its potential returns per unit of risk. Immatics NV is currently generating about -0.45 per unit of risk. If you would invest 1,843 in Telkom Indonesia Tbk on August 27, 2024 and sell it today you would lose (126.00) from holding Telkom Indonesia Tbk or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Immatics NV
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Immatics NV |
Telkom Indonesia and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Immatics
The main advantage of trading using opposite Telkom Indonesia and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.| Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Ribbon Communications | Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Shenandoah Telecommunications Co |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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