Correlation Between GoTo Gojek and Wir Asia
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Wir Asia 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 Wir Asia 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 Wir Asia Tbk, you can compare the effects of market volatilities on GoTo Gojek and Wir Asia 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 Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Wir Asia.
Diversification Opportunities for GoTo Gojek and Wir Asia
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoTo and Wir is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia Tbk 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 Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Wir Asia go up and down completely randomly.
Pair Corralation between GoTo Gojek and Wir Asia
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.29 times more return on investment than Wir Asia. However, GoTo Gojek is 1.29 times more volatile than Wir Asia Tbk. It trades about 0.09 of its potential returns per unit of risk. Wir Asia Tbk is currently generating about -0.43 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 | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GoTo Gojek Tokopedia vs. Wir Asia Tbk
Performance |
| Timeline |
| GoTo Gojek Tokopedia |
| Wir Asia Tbk |
GoTo Gojek and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoTo Gojek and Wir Asia
The main advantage of trading using opposite GoTo Gojek and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia'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 |
| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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