Correlation Between Telkom Indonesia and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Raytech Holding 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 Raytech Holding 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 Raytech Holding Limited, you can compare the effects of market volatilities on Telkom Indonesia and Raytech Holding 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 Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Raytech Holding.
Diversification Opportunities for Telkom Indonesia and Raytech Holding
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Raytech is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding 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 Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Raytech Holding go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Raytech Holding
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.26 times more return on investment than Raytech Holding. However, Telkom Indonesia Tbk is 3.89 times less risky than Raytech Holding. It trades about 0.17 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about -0.36 per unit of risk. If you would invest 2,019 in Telkom Indonesia Tbk on September 4, 2025 and sell it today you would earn a total of 138.00 from holding Telkom Indonesia Tbk or generate 6.84% 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. Raytech Holding Limited
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Raytech Holding |
Telkom Indonesia and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Raytech Holding
The main advantage of trading using opposite Telkom Indonesia and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.| Telkom Indonesia vs. Apartment Investment and | Telkom Indonesia vs. Puhui Wealth Investment | Telkom Indonesia vs. VANGUARD FUNDS PLC | Telkom Indonesia vs. Guangdong Investment Limited |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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