Correlation Between GoTo Gojek and PT Bukalapak
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and PT Bukalapak 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 PT Bukalapak 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 PT Bukalapak, you can compare the effects of market volatilities on GoTo Gojek and PT Bukalapak 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 PT Bukalapak. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and PT Bukalapak.
Diversification Opportunities for GoTo Gojek and PT Bukalapak
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoTo and BUKA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and PT Bukalapak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bukalapak 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 PT Bukalapak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bukalapak has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and PT Bukalapak go up and down completely randomly.
Pair Corralation between GoTo Gojek and PT Bukalapak
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.52 times more return on investment than PT Bukalapak. However, GoTo Gojek is 1.52 times more volatile than PT Bukalapak. It trades about -0.02 of its potential returns per unit of risk. PT Bukalapak is currently generating about -0.18 per unit of risk. If you would invest 7,400 in GoTo Gojek Tokopedia on August 24, 2024 and sell it today you would lose (200.00) from holding GoTo Gojek Tokopedia or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. PT Bukalapak
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| PT Bukalapak |
GoTo Gojek and PT Bukalapak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and PT Bukalapak
The main advantage of trading using opposite GoTo Gojek and PT Bukalapak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, PT Bukalapak 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 PT Bukalapak will offset losses from the drop in PT Bukalapak'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 |
| PT Bukalapak vs. GoTo Gojek Tokopedia | PT Bukalapak vs. Elang Mahkota Teknologi | PT Bukalapak vs. Bank Artos Indonesia | PT Bukalapak vs. Merdeka Copper Gold |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |