Correlation Between IDX 30 and Astra Agro
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By analyzing existing cross correlation between IDX 30 Jakarta and Astra Agro Lestari, you can compare the effects of market volatilities on IDX 30 and Astra Agro 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 IDX 30 with a short position of Astra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Astra Agro.
Diversification Opportunities for IDX 30 and Astra Agro
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDX and Astra is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Astra Agro Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Agro Lestari and IDX 30 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 IDX 30 Jakarta are associated (or correlated) with Astra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Agro Lestari has no effect on the direction of IDX 30 i.e., IDX 30 and Astra Agro go up and down completely randomly.
Pair Corralation between IDX 30 and Astra Agro
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.7 times more return on investment than Astra Agro. However, IDX 30 Jakarta is 1.44 times less risky than Astra Agro. It trades about -0.01 of its potential returns per unit of risk. Astra Agro Lestari is currently generating about -0.02 per unit of risk. If you would invest 48,771 in IDX 30 Jakarta on August 30, 2024 and sell it today you would lose (3,580) from holding IDX 30 Jakarta or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Astra Agro Lestari
Performance |
| Timeline |
IDX 30 and Astra Agro Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Astra Agro Lestari
Pair trading matchups for Astra Agro
Pair Trading with IDX 30 and Astra Agro
The main advantage of trading using opposite IDX 30 and Astra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Astra Agro 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 Astra Agro will offset losses from the drop in Astra Agro's long position.| IDX 30 vs. Trinitan Metals and | IDX 30 vs. Lotte Chemical Titan | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. HK Metals Utama |
| Astra Agro vs. Perusahaan Perkebunan London | Astra Agro vs. United Tractors Tbk | Astra Agro vs. Vale Indonesia Tbk | Astra Agro vs. Astra International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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