Correlation Between IDX 30 and Bank Rakyat
Specify exactly 2 symbols:
By analyzing existing cross correlation between IDX 30 Jakarta and Bank Rakyat Indonesia, you can compare the effects of market volatilities on IDX 30 and Bank Rakyat 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 Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bank Rakyat.
Diversification Opportunities for IDX 30 and Bank Rakyat
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IDX and Bank is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bank Rakyat Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat Indonesia 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 Rakyat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Rakyat Indonesia has no effect on the direction of IDX 30 i.e., IDX 30 and Bank Rakyat go up and down completely randomly.
Pair Corralation between IDX 30 and Bank Rakyat
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.55 times more return on investment than Bank Rakyat. However, IDX 30 Jakarta is 1.83 times less risky than Bank Rakyat. It trades about -0.02 of its potential returns per unit of risk. Bank Rakyat Indonesia is currently generating about -0.02 per unit of risk. If you would invest 49,550 in IDX 30 Jakarta on August 28, 2024 and sell it today you would lose (3,682) 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 | 99.71% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bank Rakyat Indonesia
Performance |
| Timeline |
IDX 30 and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bank Rakyat Indonesia
Pair trading matchups for Bank Rakyat
Pair Trading with IDX 30 and Bank Rakyat
The main advantage of trading using opposite IDX 30 and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bank Rakyat 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 Rakyat will offset losses from the drop in Bank Rakyat'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 Rakyat vs. Bank Central Asia | Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Bank Negara Indonesia | Bank Rakyat vs. Telkom Indonesia 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |