Correlation Between IDX 30 and Bank Qnb
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By analyzing existing cross correlation between IDX 30 Jakarta and Bank Qnb Indonesia, you can compare the effects of market volatilities on IDX 30 and Bank Qnb 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 Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bank Qnb.
Diversification Opportunities for IDX 30 and Bank Qnb
Very good diversification
The 3 months correlation between IDX and Bank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb 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 Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of IDX 30 i.e., IDX 30 and Bank Qnb go up and down completely randomly.
Pair Corralation between IDX 30 and Bank Qnb
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Bank Qnb. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 8.45 times less risky than Bank Qnb. The index trades about -0.22 of its potential returns per unit of risk. The Bank Qnb Indonesia is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,500 in Bank Qnb Indonesia on August 27, 2024 and sell it today you would earn a total of 1,800 from holding Bank Qnb Indonesia or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bank Qnb Indonesia
Performance |
| Timeline |
IDX 30 and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bank Qnb Indonesia
Pair trading matchups for Bank Qnb
Pair Trading with IDX 30 and Bank Qnb
The main advantage of trading using opposite IDX 30 and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bank Qnb 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 Qnb will offset losses from the drop in Bank Qnb's long position.| IDX 30 vs. Lion Metal Works | IDX 30 vs. Indointernet Tbk PT | IDX 30 vs. Enseval Putra Megatrading | IDX 30 vs. Surya Citra Media |
| Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital Indonesia |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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