Correlation Between IDX 30 and Alkindo Naratama
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By analyzing existing cross correlation between IDX 30 Jakarta and Alkindo Naratama Tbk, you can compare the effects of market volatilities on IDX 30 and Alkindo Naratama 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 Alkindo Naratama. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Alkindo Naratama.
Diversification Opportunities for IDX 30 and Alkindo Naratama
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDX and Alkindo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Alkindo Naratama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkindo Naratama 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 Alkindo Naratama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkindo Naratama Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Alkindo Naratama go up and down completely randomly.
Pair Corralation between IDX 30 and Alkindo Naratama
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Alkindo Naratama. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.56 times less risky than Alkindo Naratama. The index trades about -0.44 of its potential returns per unit of risk. The Alkindo Naratama Tbk is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 48,400 in Alkindo Naratama Tbk on August 25, 2024 and sell it today you would earn a total of 7,600 from holding Alkindo Naratama Tbk or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Alkindo Naratama Tbk
Performance |
| Timeline |
IDX 30 and Alkindo Naratama Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Alkindo Naratama Tbk
Pair trading matchups for Alkindo Naratama
Pair Trading with IDX 30 and Alkindo Naratama
The main advantage of trading using opposite IDX 30 and Alkindo Naratama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Alkindo Naratama 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 Alkindo Naratama will offset losses from the drop in Alkindo Naratama's long position.| IDX 30 vs. Surya Citra Media | IDX 30 vs. Envy Technologies Indonesia | IDX 30 vs. Gunawan Dianjaya Steel | IDX 30 vs. Nanotech Indonesia Global |
| Alkindo Naratama vs. Kedaung Indah Can | Alkindo Naratama vs. Langgeng Makmur Industri | Alkindo Naratama vs. Kabelindo Murni Tbk | Alkindo Naratama vs. Mustika Ratu 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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