Correlation Between Telkom Indonesia and Telus Corp
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Telus Corp 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 Telus Corp 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 Telus Corp, you can compare the effects of market volatilities on Telkom Indonesia and Telus Corp 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 Telus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Telus Corp.
Diversification Opportunities for Telkom Indonesia and Telus Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Telus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Telus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telus Corp 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 Telus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telus Corp has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Telus Corp go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Telus Corp
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 2.02 times more return on investment than Telus Corp. However, Telkom Indonesia is 2.02 times more volatile than Telus Corp. It trades about 0.06 of its potential returns per unit of risk. Telus Corp is currently generating about -0.3 per unit of risk. If you would invest 1,991 in Telkom Indonesia Tbk on August 22, 2025 and sell it today you would earn a total of 143.00 from holding Telkom Indonesia Tbk or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Telus Corp
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Telus Corp |
Telkom Indonesia and Telus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Telus Corp
The main advantage of trading using opposite Telkom Indonesia and Telus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Telus Corp 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 Telus Corp will offset losses from the drop in Telus Corp's long position.| Telkom Indonesia vs. Telefonica Brasil SA | Telkom Indonesia vs. Rogers Communications | Telkom Indonesia vs. Telus Corp | Telkom Indonesia vs. BCE Inc |
| Telus Corp vs. Telkom Indonesia Tbk | Telus Corp vs. Rogers Communications | Telus Corp vs. BCE Inc | Telus Corp vs. Telefonica Brasil SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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