Correlation Between GoTo Gojek and Mitra Angkasa
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Mitra Angkasa 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 Mitra Angkasa 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 Mitra Angkasa Sejahtera, you can compare the effects of market volatilities on GoTo Gojek and Mitra Angkasa 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 Mitra Angkasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Mitra Angkasa.
Diversification Opportunities for GoTo Gojek and Mitra Angkasa
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoTo and Mitra is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Mitra Angkasa Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Angkasa Sejahtera 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 Mitra Angkasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Angkasa Sejahtera has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Mitra Angkasa go up and down completely randomly.
Pair Corralation between GoTo Gojek and Mitra Angkasa
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.02 times more return on investment than Mitra Angkasa. However, GoTo Gojek is 1.02 times more volatile than Mitra Angkasa Sejahtera. It trades about 0.0 of its potential returns per unit of risk. Mitra Angkasa Sejahtera is currently generating about -0.07 per unit of risk. If you would invest 8,900 in GoTo Gojek Tokopedia on September 3, 2024 and sell it today you would lose (1,800) from holding GoTo Gojek Tokopedia or give up 20.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. Mitra Angkasa Sejahtera
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| Mitra Angkasa Sejahtera |
GoTo Gojek and Mitra Angkasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and Mitra Angkasa
The main advantage of trading using opposite GoTo Gojek and Mitra Angkasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Mitra Angkasa 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 Mitra Angkasa will offset losses from the drop in Mitra Angkasa's long position.| GoTo Gojek vs. PT Bukalapak | GoTo Gojek vs. Bank Artos Indonesia | GoTo Gojek vs. Elang Mahkota Teknologi | GoTo Gojek vs. Adaro Minerals Indonesia |
| Mitra Angkasa vs. Autopedia Sukses Lestari | Mitra Angkasa vs. Net Visi Media | Mitra Angkasa vs. Adaro Minerals Indonesia | Mitra Angkasa vs. Caturkarda Depo Bangunan |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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