Correlation Between JIAHUA STORES and Telkom Indonesia

Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Telkom Indonesia 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 JIAHUA STORES and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JIAHUA STORES and Telkom Indonesia Tbk, you can compare the effects of market volatilities on JIAHUA STORES and Telkom Indonesia 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 JIAHUA STORES with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Telkom Indonesia.

Diversification Opportunities for JIAHUA STORES and Telkom Indonesia

0.0

Correlation Coefficient

JIAHUA STORES  Telkom Indonesia

Pay attention - limited upside

The 3 months correlation between JIAHUA and Telkom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Telkom Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telkom Indonesia Tbk and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with Telkom Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telkom Indonesia Tbk has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Telkom Indonesia go up and down completely randomly.

Pair Corralation between JIAHUA STORES and Telkom Indonesia

If you would invest  12.00  in Telkom Indonesia Tbk on April 24, 2025 and sell it today you would earn a total of  1.00  from holding Telkom Indonesia Tbk or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JIAHUA STORES  vs.  Telkom Indonesia Tbk

JIAHUA STORES

Risk-Adjusted Performance

Very Weak

Over the last 90 days JIAHUA STORES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, JIAHUA STORES is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Telkom Indonesia Tbk

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Telkom Indonesia Tbk are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Telkom Indonesia may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with JIAHUA STORES and Telkom Indonesia

The main advantage of trading using opposite JIAHUA STORES and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Telkom Indonesia 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 Telkom Indonesia will offset losses from the drop in Telkom Indonesia's long position.

The idea behind JIAHUA STORES and Telkom Indonesia Tbk 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.