Correlation Between PT Bukalapak and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Tempo Inti 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 Tempo Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Tempo Inti Media, you can compare the effects of market volatilities on PT Bukalapak and Tempo Inti 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 Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Tempo Inti.
Diversification Opportunities for PT Bukalapak and Tempo Inti
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BUKA and Tempo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti Media 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 Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Tempo Inti go up and down completely randomly.
Pair Corralation between PT Bukalapak and Tempo Inti
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 0.41 times more return on investment than Tempo Inti. However, PT Bukalapak is 2.43 times less risky than Tempo Inti. It trades about -0.1 of its potential returns per unit of risk. Tempo Inti Media is currently generating about -0.29 per unit of risk. If you would invest 12,800 in PT Bukalapak on September 1, 2024 and sell it today you would lose (600.00) from holding PT Bukalapak or give up 4.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Bukalapak vs. Tempo Inti Media
Performance |
| Timeline |
| PT Bukalapak |
| Tempo Inti Media |
PT Bukalapak and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Tempo Inti
The main advantage of trading using opposite PT Bukalapak and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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