Correlation Between Telkom Indonesia and Juniper
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Juniper 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 Juniper 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 Juniper Group, you can compare the effects of market volatilities on Telkom Indonesia and Juniper 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 Juniper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Juniper.
Diversification Opportunities for Telkom Indonesia and Juniper
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Juniper is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Juniper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Group 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 Juniper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Group has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Juniper go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Juniper
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Juniper. In addition to that, Telkom Indonesia is 5.6 times more volatile than Juniper Group. It trades about -0.04 of its total potential returns per unit of risk. Juniper Group is currently generating about 0.36 per unit of volatility. If you would invest 2,658 in Juniper Group on September 2, 2024 and sell it today you would earn a total of 74.00 from holding Juniper Group or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Juniper Group
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Juniper Group |
Telkom Indonesia and Juniper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Juniper
The main advantage of trading using opposite Telkom Indonesia and Juniper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Juniper 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 Juniper will offset losses from the drop in Juniper's long position.| Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Lumen Technologies | Telkom Indonesia vs. Charter Communications |
| Juniper vs. FT Vest Equity | Juniper vs. Northern Lights | Juniper vs. Dimensional International High | Juniper vs. Matthews China Discovery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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