Correlation Between Telkom Indonesia and Gamehost
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on Telkom Indonesia and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Gamehost.
Diversification Opportunities for Telkom Indonesia and Gamehost
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Telkom and Gamehost is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Gamehost go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Gamehost
Assuming the 90 days horizon Telkom Indonesia is expected to generate 4.26 times less return on investment than Gamehost. In addition to that, Telkom Indonesia is 2.1 times more volatile than Gamehost. It trades about 0.01 of its total potential returns per unit of risk. Gamehost is currently generating about 0.09 per unit of volatility. If you would invest 708.00 in Gamehost on November 2, 2024 and sell it today you would earn a total of 12.00 from holding Gamehost or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Gamehost
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Gamehost |
Telkom Indonesia and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Gamehost
The main advantage of trading using opposite Telkom Indonesia and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. ATT Inc | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Nippon Telegraph Telephone |
| Gamehost vs. Molson Coors Brewing | Gamehost vs. Compania Cervecerias Unidas | Gamehost vs. Lincoln Electric Holdings | Gamehost vs. Rocky Brands |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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