Correlation Between Telkom Indonesia and Fresenius
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Fresenius 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 Fresenius 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 Fresenius SE Co, you can compare the effects of market volatilities on Telkom Indonesia and Fresenius 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 Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Fresenius.
Diversification Opportunities for Telkom Indonesia and Fresenius
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Fresenius is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE 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 Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Fresenius go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Fresenius
Assuming the 90 days horizon Telkom Indonesia Tbk is expected to under-perform the Fresenius. But the pink sheet apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 1.41 times less risky than Fresenius. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Fresenius SE Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,075 in Fresenius SE Co on March 19, 2024 and sell it today you would earn a total of 215.00 from holding Fresenius SE Co or generate 6.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 57.5% |
Values | Daily Returns |
Telkom Indonesia Tbk vs. Fresenius SE Co
Performance |
Timeline |
Telkom Indonesia Tbk |
Fresenius SE |
Telkom Indonesia and Fresenius Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telkom Indonesia and Fresenius
The main advantage of trading using opposite Telkom Indonesia and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' long position.Telkom Indonesia vs. Access Power Co | Telkom Indonesia vs. Radcom | Telkom Indonesia vs. FingerMotion | Telkom Indonesia vs. KORE Group Holdings |
Fresenius vs. Pennant Group | Fresenius vs. Encompass Health Corp | Fresenius vs. Enhabit | Fresenius vs. Concord Medical Services |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |