Correlation Between IDX 30 and Alfa Energi
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By analyzing existing cross correlation between IDX 30 Jakarta and Alfa Energi Investama, you can compare the effects of market volatilities on IDX 30 and Alfa Energi 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 Alfa Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Alfa Energi.
Diversification Opportunities for IDX 30 and Alfa Energi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IDX and Alfa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Alfa Energi Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Energi Investama 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 Alfa Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Energi Investama has no effect on the direction of IDX 30 i.e., IDX 30 and Alfa Energi go up and down completely randomly.
Pair Corralation between IDX 30 and Alfa Energi
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.49 times more return on investment than Alfa Energi. However, IDX 30 Jakarta is 2.03 times less risky than Alfa Energi. It trades about -0.22 of its potential returns per unit of risk. Alfa Energi Investama is currently generating about -0.29 per unit of risk. If you would invest 48,247 in IDX 30 Jakarta on August 27, 2024 and sell it today you would lose (2,379) from holding IDX 30 Jakarta or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Alfa Energi Investama
Performance |
| Timeline |
IDX 30 and Alfa Energi Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Alfa Energi Investama
Pair trading matchups for Alfa Energi
Pair Trading with IDX 30 and Alfa Energi
The main advantage of trading using opposite IDX 30 and Alfa Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Alfa Energi 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 Alfa Energi will offset losses from the drop in Alfa Energi'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 |
| Alfa Energi vs. Borneo Olah Sarana | Alfa Energi vs. Kapuas Prima Coal | Alfa Energi vs. Central Omega Resources | Alfa Energi vs. Buana Listya Tama |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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