Correlation Between IDX 30 and Benakat Petroleum
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By analyzing existing cross correlation between IDX 30 Jakarta and Benakat Petroleum Energy, you can compare the effects of market volatilities on IDX 30 and Benakat Petroleum 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 Benakat Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Benakat Petroleum.
Diversification Opportunities for IDX 30 and Benakat Petroleum
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Benakat is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Benakat Petroleum Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benakat Petroleum Energy 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 Benakat Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benakat Petroleum Energy has no effect on the direction of IDX 30 i.e., IDX 30 and Benakat Petroleum go up and down completely randomly.
Pair Corralation between IDX 30 and Benakat Petroleum
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.18 times more return on investment than Benakat Petroleum. However, IDX 30 Jakarta is 5.53 times less risky than Benakat Petroleum. It trades about -0.6 of its potential returns per unit of risk. Benakat Petroleum Energy is currently generating about -0.19 per unit of risk. If you would invest 49,269 in IDX 30 Jakarta on August 24, 2024 and sell it today you would lose (5,011) from holding IDX 30 Jakarta or give up 10.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Benakat Petroleum Energy
Performance |
| Timeline |
IDX 30 and Benakat Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Benakat Petroleum Energy
Pair trading matchups for Benakat Petroleum
Pair Trading with IDX 30 and Benakat Petroleum
The main advantage of trading using opposite IDX 30 and Benakat Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Benakat Petroleum 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 Benakat Petroleum will offset losses from the drop in Benakat Petroleum'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 |
| Benakat Petroleum vs. Petrosea Tbk | Benakat Petroleum vs. Harum Energy Tbk | Benakat Petroleum vs. Perdana Karya Perkasa | Benakat Petroleum vs. Samindo Resources 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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