Correlation Between IDX 30 and Estika Tata
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By analyzing existing cross correlation between IDX 30 Jakarta and Estika Tata Tiara, you can compare the effects of market volatilities on IDX 30 and Estika Tata 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 Estika Tata. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Estika Tata.
Diversification Opportunities for IDX 30 and Estika Tata
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Estika is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Estika Tata Tiara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estika Tata Tiara 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 Estika Tata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estika Tata Tiara has no effect on the direction of IDX 30 i.e., IDX 30 and Estika Tata go up and down completely randomly.
Pair Corralation between IDX 30 and Estika Tata
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.37 times more return on investment than Estika Tata. However, IDX 30 Jakarta is 2.73 times less risky than Estika Tata. It trades about -0.16 of its potential returns per unit of risk. Estika Tata Tiara is currently generating about -0.13 per unit of risk. If you would invest 48,237 in IDX 30 Jakarta on August 30, 2024 and sell it today you would lose (3,046) from holding IDX 30 Jakarta or give up 6.31% 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. Estika Tata Tiara
Performance |
| Timeline |
IDX 30 and Estika Tata Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Estika Tata Tiara
Pair trading matchups for Estika Tata
Pair Trading with IDX 30 and Estika Tata
The main advantage of trading using opposite IDX 30 and Estika Tata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Estika Tata 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 Estika Tata will offset losses from the drop in Estika Tata's long position.| IDX 30 vs. Weha Transportasi Indonesia | IDX 30 vs. PT Boston Furniture | IDX 30 vs. Yelooo Integra Datanet | IDX 30 vs. Surya Citra Media |
| Estika Tata vs. Sentra Food Indonesia | Estika Tata vs. Buyung Poetra Sembada | Estika Tata vs. Garudafood Putra Putri | Estika Tata vs. Campina Ice Cream |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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