Correlation Between Telkom Indonesia and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and FingerMotion 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 FingerMotion 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 FingerMotion, you can compare the effects of market volatilities on Telkom Indonesia and FingerMotion 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 FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and FingerMotion.
Diversification Opportunities for Telkom Indonesia and FingerMotion
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and FingerMotion is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion 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 FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and FingerMotion go up and down completely randomly.
Pair Corralation between Telkom Indonesia and FingerMotion
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.36 times more return on investment than FingerMotion. However, Telkom Indonesia Tbk is 2.78 times less risky than FingerMotion. It trades about 0.11 of its potential returns per unit of risk. FingerMotion is currently generating about -0.01 per unit of risk. If you would invest 1,892 in Telkom Indonesia Tbk on September 2, 2025 and sell it today you would earn a total of 263.00 from holding Telkom Indonesia Tbk or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. FingerMotion
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| FingerMotion |
Telkom Indonesia and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and FingerMotion
The main advantage of trading using opposite Telkom Indonesia and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.| Telkom Indonesia vs. Bragg Gaming Group | Telkom Indonesia vs. PARKSON Retail Group | Telkom Indonesia vs. Fast Retailing Co | Telkom Indonesia vs. GameSquare Holdings |
| FingerMotion vs. Paiute Oil Mining | FingerMotion vs. Triumph Apparel | FingerMotion vs. G III Apparel Group | FingerMotion vs. Blue Moon Metals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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