Correlation Between PT Sreeya and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both PT Sreeya and GoTo Gojek 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 PT Sreeya and GoTo Gojek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sreeya Sewu and GoTo Gojek Tokopedia, you can compare the effects of market volatilities on PT Sreeya and GoTo Gojek 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 PT Sreeya with a short position of GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sreeya and GoTo Gojek.
Diversification Opportunities for PT Sreeya and GoTo Gojek
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIPD and GoTo is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PT Sreeya Sewu and GoTo Gojek Tokopedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoTo Gojek Tokopedia and PT Sreeya 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 PT Sreeya Sewu are associated (or correlated) with GoTo Gojek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoTo Gojek Tokopedia has no effect on the direction of PT Sreeya i.e., PT Sreeya and GoTo Gojek go up and down completely randomly.
Pair Corralation between PT Sreeya and GoTo Gojek
Assuming the 90 days trading horizon PT Sreeya is expected to generate 2.43 times less return on investment than GoTo Gojek. But when comparing it to its historical volatility, PT Sreeya Sewu is 1.01 times less risky than GoTo Gojek. It trades about 0.01 of its potential returns per unit of risk. GoTo Gojek Tokopedia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,100 in GoTo Gojek Tokopedia on August 27, 2024 and sell it today you would earn a total of 700.00 from holding GoTo Gojek Tokopedia or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sreeya Sewu vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| PT Sreeya Sewu |
| GoTo Gojek Tokopedia |
PT Sreeya and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sreeya and GoTo Gojek
The main advantage of trading using opposite PT Sreeya and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sreeya position performs unexpectedly, GoTo Gojek 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 GoTo Gojek will offset losses from the drop in GoTo Gojek's long position.The idea behind PT Sreeya Sewu and GoTo Gojek Tokopedia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GoTo Gojek vs. M Cash Integrasi | GoTo Gojek vs. NFC Indonesia PT | GoTo Gojek vs. Digital Mediatama Maxima | GoTo Gojek vs. Kioson Komersial 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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