Correlation Between Telkom Indonesia and TG Venture
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and TG Venture 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 TG Venture 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 TG Venture Acquisition, you can compare the effects of market volatilities on Telkom Indonesia and TG Venture 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 TG Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and TG Venture.
Diversification Opportunities for Telkom Indonesia and TG Venture
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and TGVCU is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and TG Venture go up and down completely randomly.
Pair Corralation between Telkom Indonesia and TG Venture
If you would invest 18.00 in Telkom Indonesia Tbk on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Telkom Indonesia Tbk or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. TG Venture Acquisition
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| TG Venture Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and TG Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and TG Venture
The main advantage of trading using opposite Telkom Indonesia and TG Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, TG Venture 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 TG Venture will offset losses from the drop in TG Venture's long position.| Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. ATT Inc | Telkom Indonesia vs. Comcast Corp |
| TG Venture vs. Chemours Co | TG Venture vs. Sensient Technologies | TG Venture vs. Link Real Estate | TG Venture vs. Ecolab Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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