Correlation Between Telkom Indonesia and Blockmate Ventures
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Blockmate Ventures 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 Blockmate Ventures 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 Blockmate Ventures, you can compare the effects of market volatilities on Telkom Indonesia and Blockmate Ventures 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 Blockmate Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Blockmate Ventures.
Diversification Opportunities for Telkom Indonesia and Blockmate Ventures
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Blockmate is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Blockmate Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockmate Ventures 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 Blockmate Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockmate Ventures has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Blockmate Ventures go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Blockmate Ventures
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Blockmate Ventures. But the stock apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 10.03 times less risky than Blockmate Ventures. The stock trades about -0.08 of its potential returns per unit of risk. The Blockmate Ventures is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.06 in Blockmate Ventures on August 29, 2024 and sell it today you would earn a total of 7.04 from holding Blockmate Ventures or generate 341.75% 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. Blockmate Ventures
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Blockmate Ventures |
Telkom Indonesia and Blockmate Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Blockmate Ventures
The main advantage of trading using opposite Telkom Indonesia and Blockmate Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Blockmate Ventures 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 Blockmate Ventures will offset losses from the drop in Blockmate Ventures' 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 |
| Blockmate Ventures vs. Morgan Stanley | Blockmate Ventures vs. Goldman Sachs Group | Blockmate Ventures vs. Charles Schwab Corp | Blockmate Ventures vs. Interactive Brokers Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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