Correlation Between PT Bukalapak and Urban Jakarta
Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Urban Jakarta 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 Bukalapak and Urban Jakarta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Urban Jakarta Propertindo, you can compare the effects of market volatilities on PT Bukalapak and Urban Jakarta 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 Bukalapak with a short position of Urban Jakarta. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Urban Jakarta.
Diversification Opportunities for PT Bukalapak and Urban Jakarta
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BUKA and Urban is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Urban Jakarta Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Jakarta Propertindo and PT Bukalapak 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 Bukalapak are associated (or correlated) with Urban Jakarta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Jakarta Propertindo has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Urban Jakarta go up and down completely randomly.
Pair Corralation between PT Bukalapak and Urban Jakarta
Assuming the 90 days trading horizon PT Bukalapak is expected to generate 0.91 times more return on investment than Urban Jakarta. However, PT Bukalapak is 1.1 times less risky than Urban Jakarta. It trades about 0.05 of its potential returns per unit of risk. Urban Jakarta Propertindo is currently generating about -0.02 per unit of risk. If you would invest 11,700 in PT Bukalapak on September 15, 2024 and sell it today you would earn a total of 1,000.00 from holding PT Bukalapak or generate 8.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PT Bukalapak vs. Urban Jakarta Propertindo
Performance |
Timeline |
PT Bukalapak |
Urban Jakarta Propertindo |
PT Bukalapak and Urban Jakarta Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Bukalapak and Urban Jakarta
The main advantage of trading using opposite PT Bukalapak and Urban Jakarta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Urban Jakarta 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 Urban Jakarta will offset losses from the drop in Urban Jakarta's long position.PT Bukalapak vs. GoTo Gojek Tokopedia | PT Bukalapak vs. Elang Mahkota Teknologi | PT Bukalapak vs. Bank Artos Indonesia | PT Bukalapak vs. Merdeka Copper Gold |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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