Correlation Between Wir Asia and PT Bukalapak
Can any of the company-specific risk be diversified away by investing in both Wir Asia and PT Bukalapak 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 Wir Asia and PT Bukalapak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wir Asia Tbk and PT Bukalapak, you can compare the effects of market volatilities on Wir Asia and PT Bukalapak 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 Wir Asia with a short position of PT Bukalapak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wir Asia and PT Bukalapak.
Diversification Opportunities for Wir Asia and PT Bukalapak
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wir and BUKA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wir Asia Tbk and PT Bukalapak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bukalapak and Wir Asia 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 Wir Asia Tbk are associated (or correlated) with PT Bukalapak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bukalapak has no effect on the direction of Wir Asia i.e., Wir Asia and PT Bukalapak go up and down completely randomly.
Pair Corralation between Wir Asia and PT Bukalapak
Assuming the 90 days trading horizon Wir Asia Tbk is expected to generate 1.01 times more return on investment than PT Bukalapak. However, Wir Asia is 1.01 times more volatile than PT Bukalapak. It trades about 0.0 of its potential returns per unit of risk. PT Bukalapak is currently generating about 0.0 per unit of risk. If you would invest 9,400 in Wir Asia Tbk on September 3, 2024 and sell it today you would lose (700.00) from holding Wir Asia Tbk or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wir Asia Tbk vs. PT Bukalapak
Performance |
| Timeline |
| Wir Asia Tbk |
| PT Bukalapak |
Wir Asia and PT Bukalapak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wir Asia and PT Bukalapak
The main advantage of trading using opposite Wir Asia and PT Bukalapak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wir Asia position performs unexpectedly, PT Bukalapak 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 PT Bukalapak will offset losses from the drop in PT Bukalapak's long position.| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
| PT Bukalapak vs. GoTo Gojek Tokopedia | PT Bukalapak vs. Elang Mahkota Teknologi | PT Bukalapak vs. Bank Artos Indonesia | PT Bukalapak vs. Merdeka Copper Gold |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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