Correlation Between IDX 30 and Goodyear Indonesia
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By analyzing existing cross correlation between IDX 30 Jakarta and Goodyear Indonesia Tbk, you can compare the effects of market volatilities on IDX 30 and Goodyear Indonesia 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 Goodyear Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Goodyear Indonesia.
Diversification Opportunities for IDX 30 and Goodyear Indonesia
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDX and Goodyear is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Goodyear Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Indonesia 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 Goodyear Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Indonesia Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Goodyear Indonesia go up and down completely randomly.
Pair Corralation between IDX 30 and Goodyear Indonesia
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Goodyear Indonesia. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.72 times less risky than Goodyear Indonesia. The index trades about -0.03 of its potential returns per unit of risk. The Goodyear Indonesia Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 149,000 in Goodyear Indonesia Tbk on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Goodyear Indonesia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Goodyear Indonesia Tbk
Performance |
| Timeline |
IDX 30 and Goodyear Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Goodyear Indonesia Tbk
Pair trading matchups for Goodyear Indonesia
Pair Trading with IDX 30 and Goodyear Indonesia
The main advantage of trading using opposite IDX 30 and Goodyear Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Goodyear Indonesia 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 Goodyear Indonesia will offset losses from the drop in Goodyear Indonesia's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Weha Transportasi Indonesia |
| Goodyear Indonesia vs. Indo Kordsa Tbk | Goodyear Indonesia vs. Indospring Tbk | Goodyear Indonesia vs. Sepatu Bata Tbk | Goodyear Indonesia vs. Astra Otoparts 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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