Correlation Between CREDIT AGRICOLE and Telkom Indonesia
Can any of the company-specific risk be diversified away by investing in both CREDIT AGRICOLE 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 CREDIT AGRICOLE and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREDIT AGRICOLE and Telkom Indonesia Tbk, you can compare the effects of market volatilities on CREDIT AGRICOLE 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 CREDIT AGRICOLE with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT AGRICOLE and Telkom Indonesia.
Diversification Opportunities for CREDIT AGRICOLE and Telkom Indonesia
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CREDIT and Telkom is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 CREDIT AGRICOLE i.e., CREDIT AGRICOLE and Telkom Indonesia go up and down completely randomly.
Pair Corralation between CREDIT AGRICOLE and Telkom Indonesia
Assuming the 90 days trading horizon CREDIT AGRICOLE is expected to generate 0.25 times more return on investment than Telkom Indonesia. However, CREDIT AGRICOLE is 4.05 times less risky than Telkom Indonesia. It trades about 0.03 of its potential returns per unit of risk. Telkom Indonesia Tbk is currently generating about -0.06 per unit of risk. If you would invest 1,294 in CREDIT AGRICOLE on September 24, 2024 and sell it today you would earn a total of 6.00 from holding CREDIT AGRICOLE or generate 0.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CREDIT AGRICOLE vs. Telkom Indonesia Tbk
Performance |
Timeline |
CREDIT AGRICOLE |
Telkom Indonesia Tbk |
CREDIT AGRICOLE and Telkom Indonesia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CREDIT AGRICOLE and Telkom Indonesia
The main advantage of trading using opposite CREDIT AGRICOLE and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT AGRICOLE 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.CREDIT AGRICOLE vs. Flutter Entertainment PLC | CREDIT AGRICOLE vs. Ubisoft Entertainment SA | CREDIT AGRICOLE vs. PLAYSTUDIOS A DL 0001 | CREDIT AGRICOLE vs. SOFI TECHNOLOGIES |
Telkom Indonesia vs. Singapore Telecommunications Limited | Telkom Indonesia vs. WillScot Mobile Mini | Telkom Indonesia vs. SBA Communications Corp | Telkom Indonesia vs. CREDIT AGRICOLE |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |