Correlation Between PT Bukalapak and Bakrie Brothers
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Bakrie Brothers 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 PT Bukalapak and Bakrie Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Bakrie Brothers Tbk, you can compare the effects of market volatilities on PT Bukalapak and Bakrie Brothers 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 PT Bukalapak with a short position of Bakrie Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Bakrie Brothers.
Diversification Opportunities for PT Bukalapak and Bakrie Brothers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BUKA and Bakrie is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Bakrie Brothers Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bakrie Brothers Tbk and PT Bukalapak 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 PT Bukalapak are associated (or correlated) with Bakrie Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bakrie Brothers Tbk has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Bakrie Brothers go up and down completely randomly.
Pair Corralation between PT Bukalapak and Bakrie Brothers
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the Bakrie Brothers. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.07 times less risky than Bakrie Brothers. The stock trades about -0.04 of its potential returns per unit of risk. The Bakrie Brothers Tbk is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,000 in Bakrie Brothers Tbk on September 1, 2024 and sell it today you would lose (1,300) from holding Bakrie Brothers Tbk or give up 21.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
PT Bukalapak vs. Bakrie Brothers Tbk
Performance |
| Timeline |
| PT Bukalapak |
| Bakrie Brothers Tbk |
PT Bukalapak and Bakrie Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Bakrie Brothers
The main advantage of trading using opposite PT Bukalapak and Bakrie Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Bakrie Brothers 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 Bakrie Brothers will offset losses from the drop in Bakrie Brothers' long position.| PT Bukalapak vs. GoTo Gojek Tokopedia | PT Bukalapak vs. Elang Mahkota Teknologi | PT Bukalapak vs. Bank Artos Indonesia | PT Bukalapak vs. Merdeka Copper Gold |
| Bakrie Brothers vs. Bakrieland Development Tbk | Bakrie Brothers vs. Bakrie Sumatera Plantations | Bakrie Brothers vs. Energi Mega Persada | Bakrie Brothers vs. Darma Henwa Tbk |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |