Correlation Between PT Bukalapak and Widodo Makmur

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Can any of the company-specific risk be diversified away by investing in both PT Bukalapak and Widodo Makmur 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 Widodo Makmur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bukalapak and Widodo Makmur Perkasa, you can compare the effects of market volatilities on PT Bukalapak and Widodo Makmur 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 Widodo Makmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bukalapak and Widodo Makmur.

Diversification Opportunities for PT Bukalapak and Widodo Makmur

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BUKA and Widodo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Bukalapak and Widodo Makmur Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Widodo Makmur Perkasa 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 Widodo Makmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Widodo Makmur Perkasa has no effect on the direction of PT Bukalapak i.e., PT Bukalapak and Widodo Makmur go up and down completely randomly.

Pair Corralation between PT Bukalapak and Widodo Makmur

If you would invest  11,500  in PT Bukalapak on September 19, 2024 and sell it today you would earn a total of  900.00  from holding PT Bukalapak or generate 7.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

PT Bukalapak  vs.  Widodo Makmur Perkasa

 Performance 
       Timeline  
PT Bukalapak 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in PT Bukalapak are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, PT Bukalapak may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Widodo Makmur Perkasa 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Widodo Makmur Perkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Widodo Makmur is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

PT Bukalapak and Widodo Makmur Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PT Bukalapak and Widodo Makmur

The main advantage of trading using opposite PT Bukalapak and Widodo Makmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bukalapak position performs unexpectedly, Widodo Makmur 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 Widodo Makmur will offset losses from the drop in Widodo Makmur's long position.
The idea behind PT Bukalapak and Widodo Makmur Perkasa 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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