VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA

Value at Risk (VaR) is a risk measurement tool to calculate the estimated maximum investment loss with a certain confidence level and period. VaR calculations using financial data are often not normally distributed, so the copula method is used, which is flexible on the assumption of normality on st...

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Main Authors: Tiffany Ardhitha, Evy Sulistianingsih, Neva Satyahadewi
Format: Article
Language:English
Published: Universitas Pattimura 2023-09-01
Series:Barekeng
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Online Access:https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/9030
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author Tiffany Ardhitha
Evy Sulistianingsih
Neva Satyahadewi
author_facet Tiffany Ardhitha
Evy Sulistianingsih
Neva Satyahadewi
author_sort Tiffany Ardhitha
collection DOAJ
description Value at Risk (VaR) is a risk measurement tool to calculate the estimated maximum investment loss with a certain confidence level and period. VaR calculations using financial data are often not normally distributed, so the copula method is used, which is flexible on the assumption of normality on stock return data. Previous research discussed Gaussian copula using stocks from the telecommunications sector. In this research, using Gaussian copula on Blue Chip stocks. Blue Chip stocks have a good reputation and have a stable growth rate so they have a lower risk. Therefore, the research objective is to analyze the VaR portfolio of Blue Chip stock with Gaussian copula. This research uses the daily stock closing prices of BBNI and BBTN from November 2, 2020 to October 27, 2022. The analysis results suggested that a VaR portfolio using Gaussian copula with a confidence level of 90%, 95%, and 99%, respectively are 2.24%, 2.88%, and 4.02%. The value shows the percentage of investment risk that may be obtained in the next one-day period. This result also indicates that the higher the confidence level, the greater the VaR.
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spelling doaj-art-7d99b9b066f64ac88e7eebe6ea5e4bbe2025-08-20T04:00:55ZengUniversitas PattimuraBarekeng1978-72272615-30172023-09-011731739174810.30598/barekengvol17iss3pp1739-17489030VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULATiffany Ardhitha0Evy Sulistianingsih1Neva Satyahadewi2Department of Mathematics, Tanjungpura University, IndonesiaDepartment of Mathematics, Tanjungpura University, IndonesiaDepartment of Mathematics, Tanjungpura University, IndonesiaValue at Risk (VaR) is a risk measurement tool to calculate the estimated maximum investment loss with a certain confidence level and period. VaR calculations using financial data are often not normally distributed, so the copula method is used, which is flexible on the assumption of normality on stock return data. Previous research discussed Gaussian copula using stocks from the telecommunications sector. In this research, using Gaussian copula on Blue Chip stocks. Blue Chip stocks have a good reputation and have a stable growth rate so they have a lower risk. Therefore, the research objective is to analyze the VaR portfolio of Blue Chip stock with Gaussian copula. This research uses the daily stock closing prices of BBNI and BBTN from November 2, 2020 to October 27, 2022. The analysis results suggested that a VaR portfolio using Gaussian copula with a confidence level of 90%, 95%, and 99%, respectively are 2.24%, 2.88%, and 4.02%. The value shows the percentage of investment risk that may be obtained in the next one-day period. This result also indicates that the higher the confidence level, the greater the VaR.https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/9030portfoliovalue at riskgaussian copulablue chip
spellingShingle Tiffany Ardhitha
Evy Sulistianingsih
Neva Satyahadewi
VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
Barekeng
portfolio
value at risk
gaussian copula
blue chip
title VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
title_full VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
title_fullStr VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
title_full_unstemmed VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
title_short VALUE AT RISK ANALYSIS ON BLUE CHIP STOCKS PORTFOLIO WITH GAUSSIAN COPULA
title_sort value at risk analysis on blue chip stocks portfolio with gaussian copula
topic portfolio
value at risk
gaussian copula
blue chip
url https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/9030
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AT nevasatyahadewi valueatriskanalysisonbluechipstocksportfoliowithgaussiancopula