Correlation Between GoTo Gojek and Kino Indonesia
Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Kino Indonesia 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 Kino Indonesia 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 Kino Indonesia Tbk, you can compare the effects of market volatilities on GoTo Gojek and Kino Indonesia 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 Kino Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Kino Indonesia.
Diversification Opportunities for GoTo Gojek and Kino Indonesia
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoTo and Kino is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Kino Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kino Indonesia Tbk 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 Kino Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kino Indonesia Tbk has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Kino Indonesia go up and down completely randomly.
Pair Corralation between GoTo Gojek and Kino Indonesia
Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to under-perform the Kino Indonesia. In addition to that, GoTo Gojek is 2.69 times more volatile than Kino Indonesia Tbk. It trades about -0.03 of its total potential returns per unit of risk. Kino Indonesia Tbk is currently generating about -0.02 per unit of volatility. If you would invest 165,000 in Kino Indonesia Tbk on January 28, 2024 and sell it today you would lose (24,500) from holding Kino Indonesia Tbk or give up 14.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GoTo Gojek Tokopedia vs. Kino Indonesia Tbk
Performance |
Timeline |
GoTo Gojek Tokopedia |
Kino Indonesia Tbk |
GoTo Gojek and Kino Indonesia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GoTo Gojek and Kino Indonesia
The main advantage of trading using opposite GoTo Gojek and Kino Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoTo Gojek position performs unexpectedly, Kino Indonesia 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 Kino Indonesia will offset losses from the drop in Kino Indonesia's long position.GoTo Gojek vs. PT Bukalapak | GoTo Gojek vs. Bank Artos Indonesia | GoTo Gojek vs. Elang Mahkota Teknologi | GoTo Gojek vs. Adaro Minerals Indonesia |
Kino Indonesia vs. Astra International Tbk | Kino Indonesia vs. Telkom Indonesia Tbk | Kino Indonesia vs. Kalbe Farma Tbk |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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