Correlation Between Digital Mediatama and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and GoTo Gojek 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 Digital Mediatama and GoTo Gojek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and GoTo Gojek Tokopedia, you can compare the effects of market volatilities on Digital Mediatama and GoTo Gojek 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 Digital Mediatama with a short position of GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and GoTo Gojek.
Diversification Opportunities for Digital Mediatama and GoTo Gojek
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Digital and GoTo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and GoTo Gojek Tokopedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoTo Gojek Tokopedia and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with GoTo Gojek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoTo Gojek Tokopedia has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and GoTo Gojek go up and down completely randomly.
Pair Corralation between Digital Mediatama and GoTo Gojek
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to under-perform the GoTo Gojek. In addition to that, Digital Mediatama is 1.11 times more volatile than GoTo Gojek Tokopedia. It trades about -0.04 of its total potential returns per unit of risk. GoTo Gojek Tokopedia is currently generating about 0.0 per unit of volatility. If you would invest 11,500 in GoTo Gojek Tokopedia on August 27, 2024 and sell it today you would lose (3,700) from holding GoTo Gojek Tokopedia or give up 32.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| Digital Mediatama Maxima |
| GoTo Gojek Tokopedia |
Digital Mediatama and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and GoTo Gojek
The main advantage of trading using opposite Digital Mediatama and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, GoTo Gojek 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 GoTo Gojek will offset losses from the drop in GoTo Gojek's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
| GoTo Gojek vs. PT Bukalapak | GoTo Gojek vs. Bank Artos Indonesia | GoTo Gojek vs. Elang Mahkota Teknologi | GoTo Gojek vs. Adaro Minerals 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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