Correlation Between PT Bukalapak and Merdeka Copper
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Merdeka Copper 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 Merdeka Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Merdeka Copper Gold, you can compare the effects of market volatilities on PT Bukalapak and Merdeka Copper 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 Merdeka Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Merdeka Copper.
Diversification Opportunities for PT Bukalapak and Merdeka Copper
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BUKA and Merdeka is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Merdeka Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merdeka Copper Gold 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 Merdeka Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merdeka Copper Gold has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Merdeka Copper go up and down completely randomly.
Pair Corralation between PT Bukalapak and Merdeka Copper
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 0.93 times more return on investment than Merdeka Copper. However, PT Bukalapak is 1.08 times less risky than Merdeka Copper. It trades about -0.17 of its potential returns per unit of risk. Merdeka Copper Gold is currently generating about -0.39 per unit of risk. If you would invest 13,100 in PT Bukalapak on August 28, 2024 and sell it today you would lose (1,000.00) from holding PT Bukalapak or give up 7.63% 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. Merdeka Copper Gold
Performance |
| Timeline |
| PT Bukalapak |
| Merdeka Copper Gold |
PT Bukalapak and Merdeka Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Merdeka Copper
The main advantage of trading using opposite PT Bukalapak and Merdeka Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Merdeka Copper 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 Merdeka Copper will offset losses from the drop in Merdeka Copper'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 |
| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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