Correlation Between Walker Dunlop and Telkom Indonesia
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Telkom Indonesia 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 Walker Dunlop and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Telkom Indonesia Tbk, you can compare the effects of market volatilities on Walker Dunlop and Telkom Indonesia 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 Walker Dunlop with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Telkom Indonesia.
Diversification Opportunities for Walker Dunlop and Telkom Indonesia
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Telkom is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Telkom Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telkom Indonesia Tbk and Walker Dunlop 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 Walker Dunlop are associated (or correlated) with Telkom Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telkom Indonesia Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Telkom Indonesia go up and down completely randomly.
Pair Corralation between Walker Dunlop and Telkom Indonesia
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.46 times more return on investment than Telkom Indonesia. However, Walker Dunlop is 2.2 times less risky than Telkom Indonesia. It trades about -0.07 of its potential returns per unit of risk. Telkom Indonesia Tbk is currently generating about -0.13 per unit of risk. If you would invest 10,983 in Walker Dunlop on August 24, 2024 and sell it today you would lose (302.00) from holding Walker Dunlop or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Telkom Indonesia Tbk
Performance |
| Timeline |
| Walker Dunlop |
| Telkom Indonesia Tbk |
Walker Dunlop and Telkom Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Telkom Indonesia
The main advantage of trading using opposite Walker Dunlop and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Telkom Indonesia 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 Telkom Indonesia will offset losses from the drop in Telkom Indonesia's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. Federal National Mortgage | Walker Dunlop vs. CNFinance Holdings |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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