Correlation Between PT Bukalapak and DCI Indonesia
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and DCI 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 PT Bukalapak and DCI Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and DCI Indonesia Tbk, you can compare the effects of market volatilities on PT Bukalapak and DCI 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 PT Bukalapak with a short position of DCI Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and DCI Indonesia.
Diversification Opportunities for PT Bukalapak and DCI Indonesia
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BUKA and DCI is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and DCI Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCI Indonesia 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 DCI Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCI Indonesia Tbk has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and DCI Indonesia go up and down completely randomly.
Pair Corralation between PT Bukalapak and DCI Indonesia
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the DCI Indonesia. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.77 times less risky than DCI Indonesia. The stock trades about -0.17 of its potential returns per unit of risk. The DCI Indonesia Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,450,000 in DCI Indonesia Tbk on August 28, 2024 and sell it today you would earn a total of 27,500 from holding DCI Indonesia Tbk or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Bukalapak vs. DCI Indonesia Tbk
Performance |
| Timeline |
| PT Bukalapak |
| DCI Indonesia Tbk |
PT Bukalapak and DCI Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and DCI Indonesia
The main advantage of trading using opposite PT Bukalapak and DCI Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, DCI 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 DCI Indonesia will offset losses from the drop in DCI Indonesia's long position.| PT Bukalapak vs. Elang Mahkota Teknologi | PT Bukalapak vs. Integra Indocabinet Tbk | PT Bukalapak vs. Pudjiadi Sons Tbk | PT Bukalapak vs. Darma Henwa Tbk |
| DCI Indonesia vs. Bank Artos Indonesia | DCI Indonesia vs. Elang Mahkota Teknologi | DCI Indonesia vs. Indointernet Tbk PT | DCI Indonesia vs. PT Bukalapak |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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