Correlation Between Telkom Indonesia and WOOLWORTHS
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and WOOLWORTHS 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 WOOLWORTHS 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 WOOLWORTHS, you can compare the effects of market volatilities on Telkom Indonesia and WOOLWORTHS 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 WOOLWORTHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and WOOLWORTHS.
Diversification Opportunities for Telkom Indonesia and WOOLWORTHS
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Telkom and WOOLWORTHS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and WOOLWORTHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOOLWORTHS 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 WOOLWORTHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOOLWORTHS has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and WOOLWORTHS go up and down completely randomly.
Pair Corralation between Telkom Indonesia and WOOLWORTHS
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to under-perform the WOOLWORTHS. In addition to that, Telkom Indonesia is 6.05 times more volatile than WOOLWORTHS. It trades about 0.0 of its total potential returns per unit of risk. WOOLWORTHS is currently generating about -0.01 per unit of volatility. If you would invest 1,766 in WOOLWORTHS on December 23, 2024 and sell it today you would lose (26.00) from holding WOOLWORTHS or give up 1.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Telkom Indonesia Tbk vs. WOOLWORTHS
Performance |
Timeline |
Telkom Indonesia Tbk |
WOOLWORTHS |
Telkom Indonesia and WOOLWORTHS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telkom Indonesia and WOOLWORTHS
The main advantage of trading using opposite Telkom Indonesia and WOOLWORTHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, WOOLWORTHS 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 WOOLWORTHS will offset losses from the drop in WOOLWORTHS's long position.Telkom Indonesia vs. Adtalem Global Education | Telkom Indonesia vs. Caseys General Stores | Telkom Indonesia vs. Costco Wholesale Corp | Telkom Indonesia vs. JIAHUA STORES |
WOOLWORTHS vs. Sixt Leasing SE | WOOLWORTHS vs. DaChan Food Limited | WOOLWORTHS vs. Collins Foods Limited | WOOLWORTHS vs. EBRO FOODS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |