Correlation Between Telkom Indonesia and Castle Biosciences
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences, you can compare the effects of market volatilities on Telkom Indonesia and Castle Biosciences 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 Castle Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Castle Biosciences.
Diversification Opportunities for Telkom Indonesia and Castle Biosciences
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Castle is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences 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 Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Castle Biosciences go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Castle Biosciences
Assuming the 90 days horizon Telkom Indonesia Tbk is expected to under-perform the Castle Biosciences. But the pink sheet apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 1.73 times less risky than Castle Biosciences. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Castle Biosciences is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,595 in Castle Biosciences on May 29, 2025 and sell it today you would earn a total of 590.50 from holding Castle Biosciences or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Castle Biosciences
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Castle Biosciences |
Telkom Indonesia and Castle Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Castle Biosciences
The main advantage of trading using opposite Telkom Indonesia and Castle Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Castle Biosciences 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 Castle Biosciences will offset losses from the drop in Castle Biosciences' long position.| Telkom Indonesia vs. PT Bank Rakyat | Telkom Indonesia vs. China Tower | Telkom Indonesia vs. Bank Mandiri Persero | Telkom Indonesia vs. PT Astra International |
| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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