Correlation Between Telkom Indonesia and Good Gaming
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Good Gaming 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 Good Gaming 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 Good Gaming, you can compare the effects of market volatilities on Telkom Indonesia and Good Gaming 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 Good Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Good Gaming.
Diversification Opportunities for Telkom Indonesia and Good Gaming
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Good is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Good Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Gaming 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 Good Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Gaming has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Good Gaming go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Good Gaming
Assuming the 90 days horizon Telkom Indonesia Tbk is expected to under-perform the Good Gaming. But the pink sheet apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 2.16 times less risky than Good Gaming. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Good Gaming is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1.92 in Good Gaming on August 31, 2024 and sell it today you would lose (1.01) from holding Good Gaming or give up 52.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.17% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Good Gaming
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Good Gaming |
Telkom Indonesia and Good Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Good Gaming
The main advantage of trading using opposite Telkom Indonesia and Good Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Good Gaming 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 Good Gaming will offset losses from the drop in Good Gaming's long position.| Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. ATT Inc | Telkom Indonesia vs. Comcast Corp |
| Good Gaming vs. Intema Solutions | Good Gaming vs. 888 Holdings | Good Gaming vs. Royal Wins | Good Gaming vs. Real Luck 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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