Correlation Between Telkom Indonesia and Viad Corp
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Viad Corp 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 Viad Corp 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 Viad Corp, you can compare the effects of market volatilities on Telkom Indonesia and Viad Corp 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 Viad Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Viad Corp.
Diversification Opportunities for Telkom Indonesia and Viad Corp
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Viad is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Viad Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viad 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 Viad Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viad Corp has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Viad Corp go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Viad Corp
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 1.16 times more return on investment than Viad Corp. However, Telkom Indonesia is 1.16 times more volatile than Viad Corp. It trades about 0.0 of its potential returns per unit of risk. Viad Corp is currently generating about -0.3 per unit of risk. If you would invest 1,645 in Telkom Indonesia Tbk on November 1, 2024 and sell it today you would lose (3.00) from holding Telkom Indonesia Tbk or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Viad Corp
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Viad Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Telkom Indonesia and Viad Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Viad Corp
The main advantage of trading using opposite Telkom Indonesia and Viad Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Viad Corp 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 Viad Corp will offset losses from the drop in Viad Corp'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 |
| Viad Corp vs. Cass Information Systems | Viad Corp vs. Teleperformance SE | Viad Corp vs. Network 1 Technologies | Viad Corp vs. BrightView Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |