Correlation Between Telkom Indonesia and Delivra Health
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Delivra Health 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 Delivra Health 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 Delivra Health Brands, you can compare the effects of market volatilities on Telkom Indonesia and Delivra Health 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 Delivra Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Delivra Health.
Diversification Opportunities for Telkom Indonesia and Delivra Health
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telkom and Delivra is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Delivra Health Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivra Health Brands 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 Delivra Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivra Health Brands has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Delivra Health go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Delivra Health
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.39 times more return on investment than Delivra Health. However, Telkom Indonesia Tbk is 2.54 times less risky than Delivra Health. It trades about -0.04 of its potential returns per unit of risk. Delivra Health Brands is currently generating about -0.2 per unit of risk. If you would invest 1,632 in Telkom Indonesia Tbk on September 19, 2024 and sell it today you would lose (43.00) from holding Telkom Indonesia Tbk or give up 2.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Telkom Indonesia Tbk vs. Delivra Health Brands
Performance |
Timeline |
Telkom Indonesia Tbk |
Delivra Health Brands |
Telkom Indonesia and Delivra Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telkom Indonesia and Delivra Health
The main advantage of trading using opposite Telkom Indonesia and Delivra Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Delivra Health 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 Delivra Health will offset losses from the drop in Delivra Health's long position.Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Charter Communications | Telkom Indonesia vs. Vodafone Group PLC |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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