Correlation Between Telkom Indonesia and Telus Corp

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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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Telkom Indonesia Tbk  vs.  Telus Corp

 Performance 
       Timeline  
Telkom Indonesia Tbk 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Telkom Indonesia Tbk are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal essential indicators, Telkom Indonesia may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Telus Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Telus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.
The idea behind Telkom Indonesia Tbk and Telus Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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