Correlation Between PT Bukalapak and MNC Studios
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and MNC Studios 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 MNC Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and MNC Studios International, you can compare the effects of market volatilities on PT Bukalapak and MNC Studios 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 MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and MNC Studios.
Diversification Opportunities for PT Bukalapak and MNC Studios
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BUKA and MNC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International 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 MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and MNC Studios go up and down completely randomly.
Pair Corralation between PT Bukalapak and MNC Studios
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 0.42 times more return on investment than MNC Studios. However, PT Bukalapak is 2.36 times less risky than MNC Studios. It trades about -0.17 of its potential returns per unit of risk. MNC Studios International is currently generating about -0.28 per unit of risk. If you would invest 13,100 in PT Bukalapak on August 30, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. MNC Studios International
Performance |
| Timeline |
| PT Bukalapak |
| MNC Studios International |
PT Bukalapak and MNC Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and MNC Studios
The main advantage of trading using opposite PT Bukalapak and MNC Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, MNC Studios 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 MNC Studios will offset losses from the drop in MNC Studios' 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 |
| MNC Studios vs. Bank Artos Indonesia | MNC Studios vs. PT Bukalapak | MNC Studios vs. Sumber Alfaria Trijaya | MNC Studios 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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