Correlation Between IDX 30 and FKS Food
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By analyzing existing cross correlation between IDX 30 Jakarta and FKS Food Sejahtera, you can compare the effects of market volatilities on IDX 30 and FKS Food 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 FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and FKS Food.
Diversification Opportunities for IDX 30 and FKS Food
Very poor diversification
The 3 months correlation between IDX and FKS is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and FKS Food Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FKS Food Sejahtera 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 FKS Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FKS Food Sejahtera has no effect on the direction of IDX 30 i.e., IDX 30 and FKS Food go up and down completely randomly.
Pair Corralation between IDX 30 and FKS Food
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 1.12 times more return on investment than FKS Food. However, IDX 30 is 1.12 times more volatile than FKS Food Sejahtera. It trades about -0.31 of its potential returns per unit of risk. FKS Food Sejahtera is currently generating about -0.48 per unit of risk. If you would invest 47,396 in IDX 30 Jakarta on September 1, 2024 and sell it today you would lose (3,523) from holding IDX 30 Jakarta or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. FKS Food Sejahtera
Performance |
| Timeline |
IDX 30 and FKS Food Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
FKS Food Sejahtera
Pair trading matchups for FKS Food
Pair Trading with IDX 30 and FKS Food
The main advantage of trading using opposite IDX 30 and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, FKS Food 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 FKS Food will offset losses from the drop in FKS Food's long position.| IDX 30 vs. Indorama Synthetics Tbk | IDX 30 vs. PT Hetzer Medical | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. PT Bank Bisnis |
| FKS Food vs. Bank BRISyariah Tbk | FKS Food vs. Mitra Pinasthika Mustika | FKS Food vs. Jakarta Int Hotels | FKS Food vs. Indosterling Technomedia 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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