Correlation Between IDX 30 and Akbar Indomakmur
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By analyzing existing cross correlation between IDX 30 Jakarta and Akbar Indomakmur Stimec, you can compare the effects of market volatilities on IDX 30 and Akbar Indomakmur 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 Akbar Indomakmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Akbar Indomakmur.
Diversification Opportunities for IDX 30 and Akbar Indomakmur
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Akbar is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Akbar Indomakmur Stimec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbar Indomakmur Stimec 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 Akbar Indomakmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbar Indomakmur Stimec has no effect on the direction of IDX 30 i.e., IDX 30 and Akbar Indomakmur go up and down completely randomly.
Pair Corralation between IDX 30 and Akbar Indomakmur
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Akbar Indomakmur. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 6.3 times less risky than Akbar Indomakmur. The index trades about -0.02 of its potential returns per unit of risk. The Akbar Indomakmur Stimec is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21,800 in Akbar Indomakmur Stimec on August 29, 2024 and sell it today you would earn a total of 25,600 from holding Akbar Indomakmur Stimec or generate 117.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Akbar Indomakmur Stimec
Performance |
| Timeline |
IDX 30 and Akbar Indomakmur Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Akbar Indomakmur Stimec
Pair trading matchups for Akbar Indomakmur
Pair Trading with IDX 30 and Akbar Indomakmur
The main advantage of trading using opposite IDX 30 and Akbar Indomakmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Akbar Indomakmur 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 Akbar Indomakmur will offset losses from the drop in Akbar Indomakmur'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 |
| Akbar Indomakmur vs. Bayu Buana Tbk | Akbar Indomakmur vs. Alakasa Industrindo Tbk | Akbar Indomakmur vs. Mahaka Media Tbk | Akbar Indomakmur vs. Arthavest 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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