Correlation Between IDX 30 and Bintang Oto
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By analyzing existing cross correlation between IDX 30 Jakarta and Bintang Oto Global, you can compare the effects of market volatilities on IDX 30 and Bintang Oto 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 Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bintang Oto.
Diversification Opportunities for IDX 30 and Bintang Oto
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Bintang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global 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 Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of IDX 30 i.e., IDX 30 and Bintang Oto go up and down completely randomly.
Pair Corralation between IDX 30 and Bintang Oto
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.38 times more return on investment than Bintang Oto. However, IDX 30 Jakarta is 2.64 times less risky than Bintang Oto. It trades about -0.03 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.12 per unit of risk. If you would invest 48,759 in IDX 30 Jakarta on August 29, 2024 and sell it today you would lose (3,568) from holding IDX 30 Jakarta or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bintang Oto Global
Performance |
| Timeline |
IDX 30 and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bintang Oto Global
Pair trading matchups for Bintang Oto
Pair Trading with IDX 30 and Bintang Oto
The main advantage of trading using opposite IDX 30 and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto'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 |
| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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