Correlation Between IDX 30 and Smartfren Telecom
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By analyzing existing cross correlation between IDX 30 Jakarta and Smartfren Telecom Tbk, you can compare the effects of market volatilities on IDX 30 and Smartfren Telecom 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 Smartfren Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Smartfren Telecom.
Diversification Opportunities for IDX 30 and Smartfren Telecom
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Smartfren is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Smartfren Telecom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartfren Telecom 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 Smartfren Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartfren Telecom Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Smartfren Telecom go up and down completely randomly.
Pair Corralation between IDX 30 and Smartfren Telecom
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.22 times more return on investment than Smartfren Telecom. However, IDX 30 Jakarta is 4.46 times less risky than Smartfren Telecom. It trades about 0.01 of its potential returns per unit of risk. Smartfren Telecom Tbk is currently generating about -0.07 per unit of risk. If you would invest 44,261 in IDX 30 Jakarta on August 30, 2024 and sell it today you would earn a total of 514.00 from holding IDX 30 Jakarta or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Smartfren Telecom Tbk
Performance |
| Timeline |
IDX 30 and Smartfren Telecom Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Smartfren Telecom Tbk
Pair trading matchups for Smartfren Telecom
Pair Trading with IDX 30 and Smartfren Telecom
The main advantage of trading using opposite IDX 30 and Smartfren Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Smartfren Telecom 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 Smartfren Telecom will offset losses from the drop in Smartfren Telecom's long position.| IDX 30 vs. Weha Transportasi Indonesia | IDX 30 vs. PT Boston Furniture | IDX 30 vs. Yelooo Integra Datanet | IDX 30 vs. Surya Citra Media |
| Smartfren Telecom vs. Bank Artos Indonesia | Smartfren Telecom vs. PT Bukalapak | Smartfren Telecom vs. Sumber Alfaria Trijaya | Smartfren Telecom vs. Merdeka Copper Gold |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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