Correlation Between IDX 30 and Buyung Poetra
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By analyzing existing cross correlation between IDX 30 Jakarta and Buyung Poetra Sembada, you can compare the effects of market volatilities on IDX 30 and Buyung Poetra 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 Buyung Poetra. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Buyung Poetra.
Diversification Opportunities for IDX 30 and Buyung Poetra
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Buyung is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Buyung Poetra Sembada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buyung Poetra Sembada 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 Buyung Poetra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buyung Poetra Sembada has no effect on the direction of IDX 30 i.e., IDX 30 and Buyung Poetra go up and down completely randomly.
Pair Corralation between IDX 30 and Buyung Poetra
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Buyung Poetra. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 4.87 times less risky than Buyung Poetra. The index trades about -0.27 of its potential returns per unit of risk. The Buyung Poetra Sembada is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,500 in Buyung Poetra Sembada on August 29, 2024 and sell it today you would earn a total of 900.00 from holding Buyung Poetra Sembada or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Buyung Poetra Sembada
Performance |
| Timeline |
IDX 30 and Buyung Poetra Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Buyung Poetra Sembada
Pair trading matchups for Buyung Poetra
Pair Trading with IDX 30 and Buyung Poetra
The main advantage of trading using opposite IDX 30 and Buyung Poetra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Buyung Poetra 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 Buyung Poetra will offset losses from the drop in Buyung Poetra's long position.| IDX 30 vs. Trinitan Metals and | IDX 30 vs. Lotte Chemical Titan | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. HK Metals Utama |
| Buyung Poetra vs. Integra Indocabinet Tbk | Buyung Poetra vs. Sariguna Primatirta PT | Buyung Poetra vs. Erajaya Swasembada Tbk | Buyung Poetra vs. Puradelta Lestari PT |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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