Correlation Between IDX 30 and Capital Financial
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By analyzing existing cross correlation between IDX 30 Jakarta and Capital Financial Indonesia, you can compare the effects of market volatilities on IDX 30 and Capital Financial 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 Capital Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Capital Financial.
Diversification Opportunities for IDX 30 and Capital Financial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Capital is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Capital Financial Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Financial 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 Capital Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Financial has no effect on the direction of IDX 30 i.e., IDX 30 and Capital Financial go up and down completely randomly.
Pair Corralation between IDX 30 and Capital Financial
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Capital Financial. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.94 times less risky than Capital Financial. The index trades about -0.28 of its potential returns per unit of risk. The Capital Financial Indonesia is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 52,500 in Capital Financial Indonesia on August 29, 2024 and sell it today you would lose (1,500) from holding Capital Financial Indonesia or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Capital Financial Indonesia
Performance |
| Timeline |
IDX 30 and Capital Financial Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Capital Financial Indonesia
Pair trading matchups for Capital Financial
Pair Trading with IDX 30 and Capital Financial
The main advantage of trading using opposite IDX 30 and Capital Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Capital Financial 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 Capital Financial will offset losses from the drop in Capital Financial'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 |
| Capital Financial vs. Pacific Strategic Financial | Capital Financial vs. Bk Harda Internasional | Capital Financial vs. Indoritel Makmur Internasional | Capital Financial vs. Bank Sinarmas 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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