Correlation Between GoTo Gojek and Trimegah Karya

Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Trimegah Karya 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 GoTo Gojek and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GoTo Gojek Tokopedia and Trimegah Karya Pratama, you can compare the effects of market volatilities on GoTo Gojek and Trimegah Karya 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 GoTo Gojek with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Trimegah Karya.

Diversification Opportunities for GoTo Gojek and Trimegah Karya

-0.52

Correlation Coefficient

GoTo Gojek  Trimegah Karya

Excellent diversification

The 3 months correlation between GoTo and Trimegah is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama and GoTo Gojek 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 GoTo Gojek Tokopedia are associated (or correlated) with Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Trimegah Karya go up and down completely randomly.

Pair Corralation between GoTo Gojek and Trimegah Karya

Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.41 times more return on investment than Trimegah Karya. However, GoTo Gojek is 1.41 times more volatile than Trimegah Karya Pratama. It trades about 0.04 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.19 per unit of risk. If you would invest  7,000  in GoTo Gojek Tokopedia on December 1, 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

GoTo Gojek Tokopedia  vs.  Trimegah Karya Pratama

GoTo Gojek Tokopedia

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GoTo Gojek Tokopedia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, GoTo Gojek may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Trimegah Karya Pratama

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trimegah Karya Pratama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with GoTo Gojek and Trimegah Karya

The main advantage of trading using opposite GoTo Gojek and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.

The idea behind GoTo Gojek Tokopedia and Trimegah Karya Pratama 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.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.