Correlation Between Telkom Indonesia and Landstar System
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Landstar System 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 Landstar System 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 Landstar System, you can compare the effects of market volatilities on Telkom Indonesia and Landstar System 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 Landstar System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Landstar System.
Diversification Opportunities for Telkom Indonesia and Landstar System
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Landstar is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Landstar System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landstar System 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 Landstar System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landstar System has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Landstar System go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Landstar System
Assuming the 90 days horizon Telkom Indonesia Tbk is expected to generate 2.08 times more return on investment than Landstar System. However, Telkom Indonesia is 2.08 times more volatile than Landstar System. It trades about 0.08 of its potential returns per unit of risk. Landstar System is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Telkom Indonesia Tbk on August 27, 2025 and sell it today you would earn a total of 3.00 from holding Telkom Indonesia Tbk or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Landstar System
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Landstar System |
Telkom Indonesia and Landstar System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Landstar System
The main advantage of trading using opposite Telkom Indonesia and Landstar System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Landstar System 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 Landstar System will offset losses from the drop in Landstar System's long position.| Telkom Indonesia vs. ATT Inc | Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. Deutsche Telekom AG | Telkom Indonesia vs. Deutsche Telekom AG |
| Landstar System vs. Progress Software | Landstar System vs. Darden Restaurants | Landstar System vs. 1mage Software | Landstar System vs. Asure Software |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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