Correlation Between IDX 30 and Berlina Tbk
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By analyzing existing cross correlation between IDX 30 Jakarta and Berlina Tbk, you can compare the effects of market volatilities on IDX 30 and Berlina Tbk 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 Berlina Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Berlina Tbk.
Diversification Opportunities for IDX 30 and Berlina Tbk
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDX and Berlina is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Berlina Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berlina Tbk 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 Berlina Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berlina Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Berlina Tbk go up and down completely randomly.
Pair Corralation between IDX 30 and Berlina Tbk
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Berlina Tbk. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.08 times less risky than Berlina Tbk. The index trades about -0.22 of its potential returns per unit of risk. The Berlina Tbk is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 65,000 in Berlina Tbk on August 27, 2024 and sell it today you would earn a total of 6,500 from holding Berlina Tbk or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Berlina Tbk
Performance |
| Timeline |
IDX 30 and Berlina Tbk Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Berlina Tbk
Pair trading matchups for Berlina Tbk
Pair Trading with IDX 30 and Berlina Tbk
The main advantage of trading using opposite IDX 30 and Berlina Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Berlina Tbk 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 Berlina Tbk will offset losses from the drop in Berlina Tbk'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 |
| Berlina Tbk vs. Kedaung Indah Can | Berlina Tbk vs. Langgeng Makmur Industri | Berlina Tbk vs. Kabelindo Murni Tbk | Berlina Tbk vs. Mustika Ratu 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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