Correlation Between Wir Asia and GoTo Gojek
Can any of the company-specific risk be diversified away by investing in both Wir Asia 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 Wir Asia and GoTo Gojek 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 GoTo Gojek Tokopedia, you can compare the effects of market volatilities on Wir Asia 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 Wir Asia with a short position of GoTo Gojek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wir Asia and GoTo Gojek.
Diversification Opportunities for Wir Asia and GoTo Gojek
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wir and GoTo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Wir Asia Tbk 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 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 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 Wir Asia i.e., Wir Asia and GoTo Gojek go up and down completely randomly.
Pair Corralation between Wir Asia and GoTo Gojek
Assuming the 90 days trading horizon Wir Asia Tbk is expected to under-perform the GoTo Gojek. But the stock apears to be less risky and, when comparing its historical volatility, Wir Asia Tbk is 1.27 times less risky than GoTo Gojek. The stock trades about -0.39 of its potential returns per unit of risk. The GoTo Gojek Tokopedia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,800 in GoTo Gojek Tokopedia on September 2, 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 | 100.0% |
| Values | Daily Returns |
Wir Asia Tbk vs. GoTo Gojek Tokopedia
Performance |
| Timeline |
| Wir Asia Tbk |
| GoTo Gojek Tokopedia |
Wir Asia and GoTo Gojek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wir Asia and GoTo Gojek
The main advantage of trading using opposite Wir Asia and GoTo Gojek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wir Asia 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.| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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