Correlation Between IDX 30 and Arthavest Tbk
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By analyzing existing cross correlation between IDX 30 Jakarta and Arthavest Tbk, you can compare the effects of market volatilities on IDX 30 and Arthavest Tbk 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 Arthavest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Arthavest Tbk.
Diversification Opportunities for IDX 30 and Arthavest Tbk
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Arthavest is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Arthavest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthavest 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 Arthavest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthavest Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Arthavest Tbk go up and down completely randomly.
Pair Corralation between IDX 30 and Arthavest Tbk
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 1.49 times more return on investment than Arthavest Tbk. However, IDX 30 is 1.49 times more volatile than Arthavest Tbk. It trades about -0.26 of its potential returns per unit of risk. Arthavest Tbk is currently generating about -0.72 per unit of risk. If you would invest 47,624 in IDX 30 Jakarta on August 31, 2024 and sell it today you would lose (2,849) from holding IDX 30 Jakarta or give up 5.98% 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. Arthavest Tbk
Performance |
| Timeline |
IDX 30 and Arthavest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Arthavest Tbk
Pair trading matchups for Arthavest Tbk
Pair Trading with IDX 30 and Arthavest Tbk
The main advantage of trading using opposite IDX 30 and Arthavest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Arthavest Tbk 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 Arthavest Tbk will offset losses from the drop in Arthavest Tbk's long position.| IDX 30 vs. Victoria Insurance Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Garudafood Putra Putri |
| Arthavest Tbk vs. Japfa Comfeed Indonesia | Arthavest Tbk vs. Charoen Pokphand Indonesia | Arthavest Tbk vs. Erajaya Swasembada Tbk | Arthavest Tbk vs. Indofood Cbp Sukses |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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