Correlation Between PT Bukalapak and Indointernet Tbk
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Indointernet Tbk 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 Indointernet Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Indointernet Tbk PT, you can compare the effects of market volatilities on PT Bukalapak and Indointernet Tbk 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 Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Indointernet Tbk.
Diversification Opportunities for PT Bukalapak and Indointernet Tbk
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between BUKA and Indointernet is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet 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 Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Indointernet Tbk go up and down completely randomly.
Pair Corralation between PT Bukalapak and Indointernet Tbk
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 1.21 times more return on investment than Indointernet Tbk. However, PT Bukalapak is 1.21 times more volatile than Indointernet Tbk PT. It trades about 0.0 of its potential returns per unit of risk. Indointernet Tbk PT is currently generating about 0.0 per unit of risk. If you would invest 13,300 in PT Bukalapak on September 3, 2024 and sell it today you would lose (1,100) from holding PT Bukalapak or give up 8.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. Indointernet Tbk PT
Performance |
| Timeline |
| PT Bukalapak |
| Indointernet Tbk |
PT Bukalapak and Indointernet Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Indointernet Tbk
The main advantage of trading using opposite PT Bukalapak and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Indointernet Tbk 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk'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 |
| Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Indosterling Technomedia Tbk | Indointernet Tbk vs. PT Data Sinergitama | Indointernet Tbk vs. Envy Technologies Indonesia |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |