Correlation Between GoTo Gojek and Weha Transportasi
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Weha Transportasi 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 Weha Transportasi 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 Weha Transportasi Indonesia, you can compare the effects of market volatilities on GoTo Gojek and Weha Transportasi 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 Weha Transportasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Weha Transportasi.
Diversification Opportunities for GoTo Gojek and Weha Transportasi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GoTo and Weha is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Weha Transportasi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weha Transportasi 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 Weha Transportasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weha Transportasi has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Weha Transportasi go up and down completely randomly.
Pair Corralation between GoTo Gojek and Weha Transportasi
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.54 times more return on investment than Weha Transportasi. However, GoTo Gojek is 1.54 times more volatile than Weha Transportasi Indonesia. It trades about -0.02 of its potential returns per unit of risk. Weha Transportasi Indonesia is currently generating about -0.38 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. Weha Transportasi Indonesia
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| Weha Transportasi |
GoTo Gojek and Weha Transportasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and Weha Transportasi
The main advantage of trading using opposite GoTo Gojek and Weha Transportasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Weha Transportasi 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 Weha Transportasi will offset losses from the drop in Weha Transportasi'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 |
| Weha Transportasi vs. Astra Otoparts Tbk | Weha Transportasi vs. Citra Marga Nusaphala | Weha Transportasi vs. Metrodata Electronics Tbk | Weha Transportasi vs. Gajah Tunggal Tbk |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |