Correlation Between IDX 30 and Bali Bintang
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By analyzing existing cross correlation between IDX 30 Jakarta and Bali Bintang Sejahtera, you can compare the effects of market volatilities on IDX 30 and Bali Bintang 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 Bali Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bali Bintang.
Diversification Opportunities for IDX 30 and Bali Bintang
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Bali is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bali Bintang Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bali Bintang Sejahtera 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 Bali Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bali Bintang Sejahtera has no effect on the direction of IDX 30 i.e., IDX 30 and Bali Bintang go up and down completely randomly.
Pair Corralation between IDX 30 and Bali Bintang
Assuming the 90 days trading horizon IDX 30 is expected to generate 7.82 times less return on investment than Bali Bintang. But when comparing it to its historical volatility, IDX 30 Jakarta is 2.56 times less risky than Bali Bintang. It trades about 0.01 of its potential returns per unit of risk. Bali Bintang Sejahtera is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,500 in Bali Bintang Sejahtera on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Bali Bintang Sejahtera or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bali Bintang Sejahtera
Performance |
| Timeline |
IDX 30 and Bali Bintang Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bali Bintang Sejahtera
Pair trading matchups for Bali Bintang
Pair Trading with IDX 30 and Bali Bintang
The main advantage of trading using opposite IDX 30 and Bali Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bali Bintang 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 Bali Bintang will offset losses from the drop in Bali Bintang's long position.| IDX 30 vs. Smartfren Telecom Tbk | IDX 30 vs. Hoffmen Cleanindo | IDX 30 vs. Hero Supermarket Tbk | IDX 30 vs. PT Bank Bisnis |
| Bali Bintang vs. MD Pictures Tbk | Bali Bintang vs. MNC Studios International | Bali Bintang vs. MNC Vision Networks | Bali Bintang vs. Digital Mediatama Maxima |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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