Correlation Between IDX 30 and Bank Mestika
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By analyzing existing cross correlation between IDX 30 Jakarta and Bank Mestika Dharma, you can compare the effects of market volatilities on IDX 30 and Bank Mestika 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 Bank Mestika. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bank Mestika.
Diversification Opportunities for IDX 30 and Bank Mestika
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IDX and Bank is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bank Mestika Dharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mestika Dharma 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 Bank Mestika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mestika Dharma has no effect on the direction of IDX 30 i.e., IDX 30 and Bank Mestika go up and down completely randomly.
Pair Corralation between IDX 30 and Bank Mestika
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Bank Mestika. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.89 times less risky than Bank Mestika. The index trades about -0.02 of its potential returns per unit of risk. The Bank Mestika Dharma is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 196,503 in Bank Mestika Dharma on August 28, 2024 and sell it today you would earn a total of 6,497 from holding Bank Mestika Dharma or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bank Mestika Dharma
Performance |
| Timeline |
IDX 30 and Bank Mestika Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bank Mestika Dharma
Pair trading matchups for Bank Mestika
Pair Trading with IDX 30 and Bank Mestika
The main advantage of trading using opposite IDX 30 and Bank Mestika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bank Mestika 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 Bank Mestika will offset losses from the drop in Bank Mestika'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 |
| Bank Mestika vs. Bank Maspion Indonesia | Bank Mestika vs. Bank Sinarmas Tbk | Bank Mestika vs. Bank Ina Perdana | Bank Mestika vs. Bank Bumi Arta |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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