Correlation Between Telkom Indonesia and ViewRay
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and ViewRay 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 ViewRay 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 ViewRay, you can compare the effects of market volatilities on Telkom Indonesia and ViewRay 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 ViewRay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and ViewRay.
Diversification Opportunities for Telkom Indonesia and ViewRay
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telkom and ViewRay is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and ViewRay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViewRay 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 ViewRay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViewRay has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and ViewRay go up and down completely randomly.
Pair Corralation between Telkom Indonesia and ViewRay
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.14 times more return on investment than ViewRay. However, Telkom Indonesia Tbk is 7.12 times less risky than ViewRay. It trades about -0.03 of its potential returns per unit of risk. ViewRay is currently generating about -0.23 per unit of risk. If you would invest 2,150 in Telkom Indonesia Tbk on September 3, 2024 and sell it today you would lose (442.00) from holding Telkom Indonesia Tbk or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.91% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. ViewRay
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| ViewRay |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and ViewRay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and ViewRay
The main advantage of trading using opposite Telkom Indonesia and ViewRay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, ViewRay 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 ViewRay will offset losses from the drop in ViewRay's long position.| Telkom Indonesia vs. Highway Holdings Limited | Telkom Indonesia vs. QCR Holdings | Telkom Indonesia vs. Partner Communications | Telkom Indonesia vs. Acumen Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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