Correlation Between PT Bukalapak and Centratama Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Centratama Telekomunikasi 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 Centratama Telekomunikasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Centratama Telekomunikasi Ind, you can compare the effects of market volatilities on PT Bukalapak and Centratama Telekomunikasi 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 Centratama Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Centratama Telekomunikasi.
Diversification Opportunities for PT Bukalapak and Centratama Telekomunikasi
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BUKA and Centratama is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Centratama Telekomunikasi Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centratama Telekomunikasi 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 Centratama Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centratama Telekomunikasi has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Centratama Telekomunikasi go up and down completely randomly.
Pair Corralation between PT Bukalapak and Centratama Telekomunikasi
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the Centratama Telekomunikasi. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.1 times less risky than Centratama Telekomunikasi. The stock trades about -0.06 of its potential returns per unit of risk. The Centratama Telekomunikasi Ind is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 7,200 in Centratama Telekomunikasi Ind on August 29, 2024 and sell it today you would lose (2,700) from holding Centratama Telekomunikasi Ind or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. Centratama Telekomunikasi Ind
Performance |
| Timeline |
| PT Bukalapak |
| Centratama Telekomunikasi |
PT Bukalapak and Centratama Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Centratama Telekomunikasi
The main advantage of trading using opposite PT Bukalapak and Centratama Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Centratama Telekomunikasi 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 Centratama Telekomunikasi will offset losses from the drop in Centratama Telekomunikasi's 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 |
| Centratama Telekomunikasi vs. Bank Artos Indonesia | Centratama Telekomunikasi vs. PT Bukalapak | Centratama Telekomunikasi vs. Sumber Alfaria Trijaya | Centratama Telekomunikasi vs. Merdeka Copper Gold |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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