Correlation Between Telkom Indonesia and BNRE Old
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and BNRE Old 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 BNRE Old 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 BNRE Old, you can compare the effects of market volatilities on Telkom Indonesia and BNRE Old 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 BNRE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and BNRE Old.
Diversification Opportunities for Telkom Indonesia and BNRE Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and BNRE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and BNRE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNRE Old 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 BNRE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNRE Old has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and BNRE Old go up and down completely randomly.
Pair Corralation between Telkom Indonesia and BNRE Old
If you would invest (100.00) in BNRE Old on December 29, 2024 and sell it today you would earn a total of 100.00 from holding BNRE Old 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. BNRE Old
Performance |
Timeline |
Telkom Indonesia Tbk |
BNRE Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Telkom Indonesia and BNRE Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telkom Indonesia and BNRE Old
The main advantage of trading using opposite Telkom Indonesia and BNRE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, BNRE Old 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 BNRE Old will offset losses from the drop in BNRE Old's long position.Telkom Indonesia vs. Liberty Global PLC | Telkom Indonesia vs. Liberty Latin America | Telkom Indonesia vs. Liberty Latin America | Telkom Indonesia vs. Liberty Broadband Srs |
BNRE Old vs. Maiden Holdings | BNRE Old vs. Renaissancere Holdings | BNRE Old vs. Greenlight Capital Re | BNRE Old vs. Reinsurance Group of |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |