Correlation Between Telkom Indonesia and LF Capital
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and LF Capital 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 LF Capital 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 LF Capital Acquisition, you can compare the effects of market volatilities on Telkom Indonesia and LF Capital 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 LF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and LF Capital.
Diversification Opportunities for Telkom Indonesia and LF Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and LFAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and LF Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LF Capital Acquisition 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 LF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LF Capital Acquisition has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and LF Capital go up and down completely randomly.
Pair Corralation between Telkom Indonesia and LF Capital
If you would invest (100.00) in LF Capital Acquisition on November 27, 2024 and sell it today you would earn a total of 100.00 from holding LF Capital Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. LF Capital Acquisition
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| LF Capital Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Telkom Indonesia and LF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and LF Capital
The main advantage of trading using opposite Telkom Indonesia and LF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, LF Capital 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 LF Capital will offset losses from the drop in LF Capital'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 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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