Correlation Between PT Bukalapak and Wir Asia
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Wir Asia 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 Wir Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Wir Asia Tbk, you can compare the effects of market volatilities on PT Bukalapak and Wir Asia 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 Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Wir Asia.
Diversification Opportunities for PT Bukalapak and Wir Asia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BUKA and Wir is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia Tbk 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 Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Wir Asia go up and down completely randomly.
Pair Corralation between PT Bukalapak and Wir Asia
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 5.83 times less return on investment than Wir Asia. But when comparing it to its historical volatility, PT Bukalapak is 1.87 times less risky than Wir Asia. It trades about 0.06 of its potential returns per unit of risk. Wir Asia Tbk is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,400 in Wir Asia Tbk on November 30, 2024 and sell it today you would earn a total of 3,700 from holding Wir Asia Tbk or generate 44.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bukalapak vs. Wir Asia Tbk
Performance |
| Timeline |
| PT Bukalapak |
| Wir Asia Tbk |
PT Bukalapak and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bukalapak and Wir Asia
The main advantage of trading using opposite PT Bukalapak and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia'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 |
| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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