Correlation Between IDX 30 and Sentra Food
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By analyzing existing cross correlation between IDX 30 Jakarta and Sentra Food Indonesia, you can compare the effects of market volatilities on IDX 30 and Sentra Food 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 Sentra Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Sentra Food.
Diversification Opportunities for IDX 30 and Sentra Food
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Sentra is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Sentra Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentra Food Indonesia 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 Sentra Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentra Food Indonesia has no effect on the direction of IDX 30 i.e., IDX 30 and Sentra Food go up and down completely randomly.
Pair Corralation between IDX 30 and Sentra Food
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Sentra Food. In addition to that, IDX 30 is 1.12 times more volatile than Sentra Food Indonesia. It trades about -0.31 of its total potential returns per unit of risk. Sentra Food Indonesia is currently generating about -0.15 per unit of volatility. If you would invest 11,900 in Sentra Food Indonesia on September 1, 2024 and sell it today you would lose (400.00) from holding Sentra Food Indonesia or give up 3.36% 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. Sentra Food Indonesia
Performance |
| Timeline |
IDX 30 and Sentra Food Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Sentra Food Indonesia
Pair trading matchups for Sentra Food
Pair Trading with IDX 30 and Sentra Food
The main advantage of trading using opposite IDX 30 and Sentra Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Sentra Food 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 Sentra Food will offset losses from the drop in Sentra Food's long position.| IDX 30 vs. Indorama Synthetics Tbk | IDX 30 vs. PT Hetzer Medical | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. PT Bank Bisnis |
| Sentra Food vs. Garudafood Putra Putri | Sentra Food vs. Estika Tata Tiara | Sentra Food vs. Campina Ice Cream | Sentra Food vs. PT Wahana Interfood |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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