Correlation Between IDX 30 and Puradelta Lestari
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By analyzing existing cross correlation between IDX 30 Jakarta and Puradelta Lestari PT, you can compare the effects of market volatilities on IDX 30 and Puradelta Lestari 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 Puradelta Lestari. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Puradelta Lestari.
Diversification Opportunities for IDX 30 and Puradelta Lestari
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Puradelta is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Puradelta Lestari PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puradelta Lestari 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 Puradelta Lestari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puradelta Lestari has no effect on the direction of IDX 30 i.e., IDX 30 and Puradelta Lestari go up and down completely randomly.
Pair Corralation between IDX 30 and Puradelta Lestari
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Puradelta Lestari. In addition to that, IDX 30 is 1.54 times more volatile than Puradelta Lestari PT. It trades about -0.28 of its total potential returns per unit of risk. Puradelta Lestari PT is currently generating about -0.08 per unit of volatility. If you would invest 16,200 in Puradelta Lestari PT on August 28, 2024 and sell it today you would lose (200.00) from holding Puradelta Lestari PT or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Puradelta Lestari PT
Performance |
| Timeline |
IDX 30 and Puradelta Lestari Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Puradelta Lestari PT
Pair trading matchups for Puradelta Lestari
Pair Trading with IDX 30 and Puradelta Lestari
The main advantage of trading using opposite IDX 30 and Puradelta Lestari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Puradelta Lestari 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 Puradelta Lestari will offset losses from the drop in Puradelta Lestari'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 |
| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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