Correlation Between GoTo Gojek and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and PT Kusuma 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 Kusuma 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 Kusuma Kemindo, you can compare the effects of market volatilities on GoTo Gojek and PT Kusuma 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 Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and PT Kusuma.
Diversification Opportunities for GoTo Gojek and PT Kusuma
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoTo and KKES is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo 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 Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and PT Kusuma go up and down completely randomly.
Pair Corralation between GoTo Gojek and PT Kusuma
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 2.43 times more return on investment than PT Kusuma. However, GoTo Gojek is 2.43 times more volatile than PT Kusuma Kemindo. It trades about 0.09 of its potential returns per unit of risk. PT Kusuma Kemindo is currently generating about -0.47 per unit of risk. If you would invest 6,800 in GoTo Gojek Tokopedia on September 2, 2024 and sell it today you would earn a total of 400.00 from holding GoTo Gojek Tokopedia or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. PT Kusuma Kemindo
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| PT Kusuma Kemindo |
GoTo Gojek and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and PT Kusuma
The main advantage of trading using opposite GoTo Gojek and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, PT Kusuma 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 Kusuma will offset losses from the drop in PT Kusuma'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 Kusuma vs. PT Hetzer Medical | PT Kusuma vs. Bangun Karya Perkasa | PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Sari Kreasi |
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 Stocks Directory module to find actively traded stocks across global markets.
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