Correlation Between Telkom Indonesia and Grayscale Litecoin
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Grayscale Litecoin 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 Grayscale Litecoin 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 Grayscale Litecoin Trust, you can compare the effects of market volatilities on Telkom Indonesia and Grayscale Litecoin 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 Grayscale Litecoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Grayscale Litecoin.
Diversification Opportunities for Telkom Indonesia and Grayscale Litecoin
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Grayscale is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Grayscale Litecoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Litecoin Trust 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 Grayscale Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Litecoin Trust has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Grayscale Litecoin go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Grayscale Litecoin
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Grayscale Litecoin. But the stock apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 5.05 times less risky than Grayscale Litecoin. The stock trades about -0.06 of its potential returns per unit of risk. The Grayscale Litecoin Trust is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Grayscale Litecoin Trust on September 12, 2024 and sell it today you would earn a total of 1,336 from holding Grayscale Litecoin Trust or generate 245.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Grayscale Litecoin Trust
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Grayscale Litecoin Trust |
Telkom Indonesia and Grayscale Litecoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Grayscale Litecoin
The main advantage of trading using opposite Telkom Indonesia and Grayscale Litecoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Grayscale Litecoin 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 Grayscale Litecoin will offset losses from the drop in Grayscale Litecoin'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 |
| Grayscale Litecoin vs. Grayscale Bitcoin Cash | Grayscale Litecoin vs. Grayscale Digital Large | Grayscale Litecoin vs. Grayscale Ethereum Trust | Grayscale Litecoin vs. Bitwise 10 Crypto |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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