Correlation Between Telkom Indonesia and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and 360 Finance 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 360 Finance 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 360 Finance, you can compare the effects of market volatilities on Telkom Indonesia and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and 360 Finance.
Diversification Opportunities for Telkom Indonesia and 360 Finance
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and 360 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and 360 Finance go up and down completely randomly.
Pair Corralation between Telkom Indonesia and 360 Finance
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.53 times more return on investment than 360 Finance. However, Telkom Indonesia Tbk is 1.9 times less risky than 360 Finance. It trades about 0.1 of its potential returns per unit of risk. 360 Finance is currently generating about -0.14 per unit of risk. If you would invest 1,942 in Telkom Indonesia Tbk on September 5, 2025 and sell it today you would earn a total of 250.00 from holding Telkom Indonesia Tbk or generate 12.87% 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. 360 Finance
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| 360 Finance |
Telkom Indonesia and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and 360 Finance
The main advantage of trading using opposite Telkom Indonesia and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Telkom Indonesia vs. Chesapeake Utilities | Telkom Indonesia vs. Bankwell Financial Group | Telkom Indonesia vs. Benchmark Electronics | Telkom Indonesia vs. Jones Soda Co |
| 360 Finance vs. Burlington Stores | 360 Finance vs. Avecho Biotechnology Limited | 360 Finance vs. Costco Wholesale Corp | 360 Finance vs. QKL Stores |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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