Correlation Between PT Bukalapak and Elang Mahkota
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Elang Mahkota 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 Elang Mahkota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Elang Mahkota Teknologi, you can compare the effects of market volatilities on PT Bukalapak and Elang Mahkota 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 Elang Mahkota. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Elang Mahkota.
Diversification Opportunities for PT Bukalapak and Elang Mahkota
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BUKA and Elang is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Elang Mahkota Teknologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elang Mahkota Teknologi 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 Elang Mahkota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elang Mahkota Teknologi has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Elang Mahkota go up and down completely randomly.
Pair Corralation between PT Bukalapak and Elang Mahkota
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the Elang Mahkota. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.5 times less risky than Elang Mahkota. The stock trades about -0.11 of its potential returns per unit of risk. The Elang Mahkota Teknologi is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 52,500 in Elang Mahkota Teknologi on November 3, 2024 and sell it today you would earn a total of 4,500 from holding Elang Mahkota Teknologi or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. Elang Mahkota Teknologi
Performance |
| Timeline |
| PT Bukalapak |
| Elang Mahkota Teknologi |
PT Bukalapak and Elang Mahkota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Elang Mahkota
The main advantage of trading using opposite PT Bukalapak and Elang Mahkota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Elang Mahkota 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 Elang Mahkota will offset losses from the drop in Elang Mahkota'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 |
| Elang Mahkota vs. Bank Artos Indonesia | Elang Mahkota vs. PT Bukalapak | Elang Mahkota vs. Sumber Alfaria Trijaya | Elang Mahkota 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |