Correlation Between Telkom Indonesia and Moxian

Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Moxian 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 Moxian 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 Moxian Inc, you can compare the effects of market volatilities on Telkom Indonesia and Moxian 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 Moxian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Moxian.

Diversification Opportunities for Telkom Indonesia and Moxian

-0.38

Correlation Coefficient

Telkom Indonesia  Moxian

Very good diversification

The 3 months correlation between Telkom and Moxian is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Moxian Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moxian Inc 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 Moxian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moxian Inc has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Moxian go up and down completely randomly.

Pair Corralation between Telkom Indonesia and Moxian

If you would invest  16.00  in Telkom Indonesia Tbk on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Telkom Indonesia Tbk or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Telkom Indonesia Tbk  vs.  Moxian Inc

Telkom Indonesia Tbk

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telkom Indonesia Tbk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, Telkom Indonesia is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Telkom Indonesia and Moxian

The main advantage of trading using opposite Telkom Indonesia and Moxian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Moxian 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 Moxian will offset losses from the drop in Moxian's long position.

The idea behind Telkom Indonesia Tbk and Moxian Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.