Correlation Between IDX 30 and Abm Investama
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By analyzing existing cross correlation between IDX 30 Jakarta and Abm Investama Tbk, you can compare the effects of market volatilities on IDX 30 and Abm Investama 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 Abm Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Abm Investama.
Diversification Opportunities for IDX 30 and Abm Investama
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Abm is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Abm Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abm Investama Tbk 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 Abm Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abm Investama Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Abm Investama go up and down completely randomly.
Pair Corralation between IDX 30 and Abm Investama
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.42 times more return on investment than Abm Investama. However, IDX 30 Jakarta is 2.4 times less risky than Abm Investama. It trades about -0.1 of its potential returns per unit of risk. Abm Investama Tbk is currently generating about -0.17 per unit of risk. If you would invest 48,050 in IDX 30 Jakarta on August 28, 2024 and sell it today you would lose (2,859) from holding IDX 30 Jakarta or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Abm Investama Tbk
Performance |
| Timeline |
IDX 30 and Abm Investama Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Abm Investama Tbk
Pair trading matchups for Abm Investama
Pair Trading with IDX 30 and Abm Investama
The main advantage of trading using opposite IDX 30 and Abm Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Abm Investama 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 Abm Investama will offset losses from the drop in Abm Investama's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Steel Pipe Industry |
| Abm Investama vs. Baramulti Suksessarana Tbk | Abm Investama vs. Mitrabara Adiperdana PT | Abm Investama vs. Sumber Alfaria Trijaya | Abm Investama vs. Surya Esa Perkasa |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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