Correlation Between Telkom Indonesia and Wayne Savings
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Wayne Savings 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 Wayne Savings 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 Wayne Savings Bancshares, you can compare the effects of market volatilities on Telkom Indonesia and Wayne Savings 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 Wayne Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Wayne Savings.
Diversification Opportunities for Telkom Indonesia and Wayne Savings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Wayne is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Wayne Savings Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayne Savings Bancshares 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 Wayne Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayne Savings Bancshares has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Wayne Savings go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Wayne Savings
If you would invest 2,841 in Wayne Savings Bancshares on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Wayne Savings Bancshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Wayne Savings Bancshares
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Wayne Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Wayne Savings
The main advantage of trading using opposite Telkom Indonesia and Wayne Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Wayne Savings 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 Wayne Savings will offset losses from the drop in Wayne Savings' long position.| Telkom Indonesia vs. Highway Holdings Limited | Telkom Indonesia vs. QCR Holdings | Telkom Indonesia vs. Partner Communications | Telkom Indonesia vs. Acumen Pharmaceuticals |
| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street Financial |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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