Correlation Between PT Bukalapak and Prima Andalan
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Prima Andalan 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 Prima Andalan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Prima Andalan Mandiri, you can compare the effects of market volatilities on PT Bukalapak and Prima Andalan 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 Prima Andalan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Prima Andalan.
Diversification Opportunities for PT Bukalapak and Prima Andalan
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BUKA and Prima is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Prima Andalan Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Andalan Mandiri 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 Prima Andalan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Andalan Mandiri has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Prima Andalan go up and down completely randomly.
Pair Corralation between PT Bukalapak and Prima Andalan
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the Prima Andalan. In addition to that, PT Bukalapak is 1.9 times more volatile than Prima Andalan Mandiri. It trades about -0.04 of its total potential returns per unit of risk. Prima Andalan Mandiri is currently generating about 0.06 per unit of volatility. If you would invest 399,245 in Prima Andalan Mandiri on September 1, 2024 and sell it today you would earn a total of 128,255 from holding Prima Andalan Mandiri or generate 32.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
PT Bukalapak vs. Prima Andalan Mandiri
Performance |
| Timeline |
| PT Bukalapak |
| Prima Andalan Mandiri |
PT Bukalapak and Prima Andalan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Prima Andalan
The main advantage of trading using opposite PT Bukalapak and Prima Andalan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Prima Andalan 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 Prima Andalan will offset losses from the drop in Prima Andalan'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 |
| Prima Andalan vs. Bank Artos Indonesia | Prima Andalan vs. GoTo Gojek Tokopedia | Prima Andalan vs. Elang Mahkota Teknologi | Prima Andalan 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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