Correlation Between Telkom Indonesia and Aeon Co
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Aeon Co 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 Aeon Co 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 Aeon Co Ltd, you can compare the effects of market volatilities on Telkom Indonesia and Aeon Co 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 Aeon Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Aeon Co.
Diversification Opportunities for Telkom Indonesia and Aeon Co
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Telkom and Aeon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Aeon Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Co 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 Aeon Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Co has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Aeon Co go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Aeon Co
If you would invest 2,300 in Aeon Co Ltd on November 18, 2024 and sell it today you would earn a total of 147.00 from holding Aeon Co Ltd or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Aeon Co Ltd
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Aeon Co |
Telkom Indonesia and Aeon Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Aeon Co
The main advantage of trading using opposite Telkom Indonesia and Aeon Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Aeon Co 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 Aeon Co will offset losses from the drop in Aeon Co's long position.| Telkom Indonesia vs. Vodafone Group PLC | Telkom Indonesia vs. KDDI Corp | Telkom Indonesia vs. Amrica Mvil, SAB | Telkom Indonesia vs. Singapore Telecommunications Limited |
| Aeon Co vs. El Puerto de | Aeon Co vs. Dillards | Aeon Co vs. Tokyu Corp ADR | Aeon Co vs. Shoprite Holdings Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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