Correlation Between Trimegah Karya and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya 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 Trimegah Karya and GoTo Gojek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Karya Pratama and GoTo Gojek Tokopedia, you can compare the effects of market volatilities on Trimegah Karya 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 Trimegah Karya with a short position of GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and GoTo Gojek.
Diversification Opportunities for Trimegah Karya and GoTo Gojek
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trimegah and GoTo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama 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 Trimegah Karya 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 Trimegah Karya Pratama 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 Trimegah Karya i.e., Trimegah Karya and GoTo Gojek go up and down completely randomly.
Pair Corralation between Trimegah Karya and GoTo Gojek
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the GoTo Gojek. But the stock apears to be less risky and, when comparing its historical volatility, Trimegah Karya Pratama is 2.12 times less risky than GoTo Gojek. The stock trades about -0.17 of its potential returns per unit of risk. The GoTo Gojek Tokopedia is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,000 in GoTo Gojek Tokopedia on August 30, 2024 and sell it today you would earn a total of 300.00 from holding GoTo Gojek Tokopedia or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Karya Pratama vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| Trimegah Karya Pratama |
| GoTo Gojek Tokopedia |
Trimegah Karya and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Karya and GoTo Gojek
The main advantage of trading using opposite Trimegah Karya and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya 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.| Trimegah Karya vs. Dyandra Media International | Trimegah Karya vs. Global Mediacom Tbk | Trimegah Karya vs. Sentra Food Indonesia | Trimegah Karya vs. Visi Media Asia |
| GoTo Gojek vs. PT Bukalapak | GoTo Gojek vs. Bank Artos Indonesia | GoTo Gojek vs. Elang Mahkota Teknologi | GoTo Gojek vs. Adaro Minerals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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