Correlation Between Telkom Indonesia and Omnilit Acquisition
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Omnilit Acquisition 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 Omnilit Acquisition 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 Omnilit Acquisition Corp, you can compare the effects of market volatilities on Telkom Indonesia and Omnilit Acquisition 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 Omnilit Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Omnilit Acquisition.
Diversification Opportunities for Telkom Indonesia and Omnilit Acquisition
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Omnilit is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Omnilit Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnilit Acquisition Corp 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 Omnilit Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnilit Acquisition Corp has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Omnilit Acquisition go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Omnilit Acquisition
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Omnilit Acquisition. In addition to that, Telkom Indonesia is 6.55 times more volatile than Omnilit Acquisition Corp. It trades about -0.05 of its total potential returns per unit of risk. Omnilit Acquisition Corp is currently generating about 0.13 per unit of volatility. If you would invest 1,015 in Omnilit Acquisition Corp on October 21, 2024 and sell it today you would earn a total of 34.00 from holding Omnilit Acquisition Corp or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 24.4% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Omnilit Acquisition Corp
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Omnilit Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Omnilit Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Omnilit Acquisition
The main advantage of trading using opposite Telkom Indonesia and Omnilit Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Omnilit Acquisition 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 Omnilit Acquisition will offset losses from the drop in Omnilit Acquisition'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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