Correlation Between Telkom Indonesia and Jaguar Global
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Jaguar Global 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 Jaguar Global 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 Jaguar Global Growth, you can compare the effects of market volatilities on Telkom Indonesia and Jaguar Global 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 Jaguar Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Jaguar Global.
Diversification Opportunities for Telkom Indonesia and Jaguar Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Jaguar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Jaguar Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Global Growth 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 Jaguar Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Global Growth has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Jaguar Global go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Jaguar Global
If you would invest (100.00) in Jaguar Global Growth on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Jaguar Global Growth or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Jaguar Global Growth
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Jaguar Global Growth |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Telkom Indonesia and Jaguar Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Jaguar Global
The main advantage of trading using opposite Telkom Indonesia and Jaguar Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Jaguar Global 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 Jaguar Global will offset losses from the drop in Jaguar Global'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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