Correlation Between Telkom Indonesia and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Vantage Towers 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 Vantage Towers 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 Vantage Towers AG, you can compare the effects of market volatilities on Telkom Indonesia and Vantage Towers 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 Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Vantage Towers.
Diversification Opportunities for Telkom Indonesia and Vantage Towers
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Vantage is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Vantage Towers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Towers AG 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 Vantage Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Towers AG has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Vantage Towers go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Vantage Towers
If you would invest 1,553 in Telkom Indonesia Tbk on October 20, 2024 and sell it today you would earn a total of 95.00 from holding Telkom Indonesia Tbk or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Vantage Towers AG
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Vantage Towers AG |
Telkom Indonesia and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Vantage Towers
The main advantage of trading using opposite Telkom Indonesia and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Vantage Towers 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 Vantage Towers will offset losses from the drop in Vantage Towers' 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 |
| Vantage Towers vs. CBRE Group Class | Vantage Towers vs. Cellnex Telecom SA | Vantage Towers vs. Cellnex Telecom SA | Vantage Towers vs. CoStar 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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