Correlation Between PT Bukalapak and Red Planet
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Red Planet 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 Red Planet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Red Planet Indonesia, you can compare the effects of market volatilities on PT Bukalapak and Red Planet 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 Red Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Red Planet.
Diversification Opportunities for PT Bukalapak and Red Planet
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BUKA and Red is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Red Planet Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Planet Indonesia 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 Red Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Planet Indonesia has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Red Planet go up and down completely randomly.
Pair Corralation between PT Bukalapak and Red Planet
Assuming the 90 days trading horizon PT Bukalapak is expected to under-perform the Red Planet. But the stock apears to be less risky and, when comparing its historical volatility, PT Bukalapak is 1.05 times less risky than Red Planet. The stock trades about -0.04 of its potential returns per unit of risk. The Red Planet Indonesia is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Red Planet Indonesia on September 1, 2024 and sell it today you would lose (1,900) from holding Red Planet Indonesia or give up 38.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. Red Planet Indonesia
Performance |
| Timeline |
| PT Bukalapak |
| Red Planet Indonesia |
PT Bukalapak and Red Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Red Planet
The main advantage of trading using opposite PT Bukalapak and Red Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Red Planet 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 Red Planet will offset losses from the drop in Red Planet'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 |
| Red Planet vs. Japfa Comfeed Indonesia | Red Planet vs. Charoen Pokphand Indonesia | Red Planet vs. Erajaya Swasembada Tbk | Red Planet vs. Indofood Cbp Sukses |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |