Correlation Between GoTo Gojek and Jasnita Telekomindo

Can any of the company-specific risk be diversified away by investing in both GoTo Gojek and Jasnita Telekomindo 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 Jasnita Telekomindo 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 Jasnita Telekomindo Tbk, you can compare the effects of market volatilities on GoTo Gojek and Jasnita Telekomindo 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 Jasnita Telekomindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoTo Gojek and Jasnita Telekomindo.

Diversification Opportunities for GoTo Gojek and Jasnita Telekomindo

-0.33

Correlation Coefficient

GoTo Gojek  Jasnita Telekomindo

Very good diversification

The 3 months correlation between GoTo and Jasnita is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GoTo Gojek Tokopedia and Jasnita Telekomindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasnita Telekomindo 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 Jasnita Telekomindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasnita Telekomindo Tbk has no effect on the direction of GoTo Gojek i.e., GoTo Gojek and Jasnita Telekomindo go up and down completely randomly.

Pair Corralation between GoTo Gojek and Jasnita Telekomindo

Assuming the 90 days trading horizon GoTo Gojek Tokopedia is expected to generate 1.75 times more return on investment than Jasnita Telekomindo. However, GoTo Gojek is 1.75 times more volatile than Jasnita Telekomindo Tbk. It trades about 0.15 of its potential returns per unit of risk. Jasnita Telekomindo Tbk is currently generating about -0.06 per unit of risk. If you would invest  5,200  in GoTo Gojek Tokopedia on September 4, 2024 and sell it today you would earn a total of  1,900  from holding GoTo Gojek Tokopedia or generate 36.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GoTo Gojek Tokopedia  vs.  Jasnita Telekomindo Tbk

GoTo Gojek Tokopedia

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GoTo Gojek Tokopedia are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, GoTo Gojek disclosed solid returns over the last few months and may actually be approaching a breakup point.

Jasnita Telekomindo Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jasnita Telekomindo Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with GoTo Gojek and Jasnita Telekomindo

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

The idea behind GoTo Gojek Tokopedia and Jasnita Telekomindo Tbk 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.