Correlation Between GoTo Gojek and Prima Andalan
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Prima Andalan 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 Prima Andalan 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 Prima Andalan Mandiri, you can compare the effects of market volatilities on GoTo Gojek and Prima Andalan 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 Prima Andalan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Prima Andalan.
Diversification Opportunities for GoTo Gojek and Prima Andalan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoTo and Prima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Prima Andalan Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Andalan Mandiri 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 Prima Andalan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Andalan Mandiri has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Prima Andalan go up and down completely randomly.
Pair Corralation between GoTo Gojek and Prima Andalan
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 5.47 times more return on investment than Prima Andalan. However, GoTo Gojek is 5.47 times more volatile than Prima Andalan Mandiri. It trades about 0.09 of its potential returns per unit of risk. Prima Andalan Mandiri is currently generating about -0.16 per unit of risk. If you would invest 6,800 in GoTo Gojek Tokopedia on September 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. Prima Andalan Mandiri
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| Prima Andalan Mandiri |
GoTo Gojek and Prima Andalan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and Prima Andalan
The main advantage of trading using opposite GoTo Gojek and Prima Andalan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Prima Andalan 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 Prima Andalan will offset losses from the drop in Prima Andalan'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 |
| Prima Andalan vs. Bank Artos Indonesia | Prima Andalan vs. GoTo Gojek Tokopedia | Prima Andalan vs. Elang Mahkota Teknologi | Prima Andalan 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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