Correlation Between PT Bukalapak and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and GoTo Gojek 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 GoTo Gojek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and GoTo Gojek Tokopedia, you can compare the effects of market volatilities on PT Bukalapak and GoTo Gojek 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 GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and GoTo Gojek.
Diversification Opportunities for PT Bukalapak and GoTo Gojek
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BUKA and GoTo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and GoTo Gojek Tokopedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoTo Gojek Tokopedia 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 GoTo Gojek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoTo Gojek Tokopedia has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and GoTo Gojek go up and down completely randomly.
Pair Corralation between PT Bukalapak and GoTo Gojek
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the GoTo Gojek. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.28 times less risky than GoTo Gojek. The stock trades about -0.04 of its potential returns per unit of risk. The GoTo Gojek Tokopedia is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 12,500 in GoTo Gojek Tokopedia on August 27, 2024 and sell it today you would lose (4,700) from holding GoTo Gojek Tokopedia or give up 37.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| PT Bukalapak |
| GoTo Gojek Tokopedia |
PT Bukalapak and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and GoTo Gojek
The main advantage of trading using opposite PT Bukalapak and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, GoTo Gojek 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 GoTo Gojek will offset losses from the drop in GoTo Gojek'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 |
| GoTo Gojek vs. PT Bukalapak | GoTo Gojek vs. Bank Artos Indonesia | GoTo Gojek vs. Elang Mahkota Teknologi | GoTo Gojek vs. Adaro Minerals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |