Correlation Between GoTo Gojek and Bank Artos
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Bank Artos 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 GoTo Gojek and Bank Artos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoTo Gojek Tokopedia and Bank Artos Indonesia, you can compare the effects of market volatilities on GoTo Gojek and Bank Artos 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 GoTo Gojek with a short position of Bank Artos. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Bank Artos.
Diversification Opportunities for GoTo Gojek and Bank Artos
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoTo and Bank is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Bank Artos Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Artos Indonesia and GoTo Gojek 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 GoTo Gojek Tokopedia are associated (or correlated) with Bank Artos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Artos Indonesia has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Bank Artos go up and down completely randomly.
Pair Corralation between GoTo Gojek and Bank Artos
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.52 times more return on investment than Bank Artos. However, GoTo Gojek is 1.52 times more volatile than Bank Artos Indonesia. It trades about 0.13 of its potential returns per unit of risk. Bank Artos Indonesia is currently generating about -0.15 per unit of risk. If you would invest 6,800 in GoTo Gojek Tokopedia on August 28, 2024 and sell it today you would earn a total of 700.00 from holding GoTo Gojek Tokopedia or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. Bank Artos Indonesia
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| Bank Artos Indonesia |
GoTo Gojek and Bank Artos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and Bank Artos
The main advantage of trading using opposite GoTo Gojek and Bank Artos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Bank Artos 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 Bank Artos will offset losses from the drop in Bank Artos' long position.| GoTo Gojek vs. M Cash Integrasi | GoTo Gojek vs. NFC Indonesia PT | GoTo Gojek vs. Digital Mediatama Maxima | GoTo Gojek vs. Kioson Komersial Indonesia |
| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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