Correlation Between IDX 30 and Indonesia Pondasi
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By analyzing existing cross correlation between IDX 30 Jakarta and Indonesia Pondasi Raya, you can compare the effects of market volatilities on IDX 30 and Indonesia Pondasi 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 Indonesia Pondasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Indonesia Pondasi.
Diversification Opportunities for IDX 30 and Indonesia Pondasi
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDX and Indonesia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Indonesia Pondasi Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Pondasi Raya 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 Indonesia Pondasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Pondasi Raya has no effect on the direction of IDX 30 i.e., IDX 30 and Indonesia Pondasi go up and down completely randomly.
Pair Corralation between IDX 30 and Indonesia Pondasi
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Indonesia Pondasi. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.4 times less risky than Indonesia Pondasi. The index trades about -0.02 of its potential returns per unit of risk. The Indonesia Pondasi Raya is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16,098 in Indonesia Pondasi Raya on September 2, 2024 and sell it today you would earn a total of 1,402 from holding Indonesia Pondasi Raya or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Indonesia Pondasi Raya
Performance |
| Timeline |
IDX 30 and Indonesia Pondasi Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Indonesia Pondasi Raya
Pair trading matchups for Indonesia Pondasi
Pair Trading with IDX 30 and Indonesia Pondasi
The main advantage of trading using opposite IDX 30 and Indonesia Pondasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Indonesia Pondasi 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 Indonesia Pondasi will offset losses from the drop in Indonesia Pondasi's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. PT Jobubu Jarum |
| Indonesia Pondasi vs. Matahari Department Store | Indonesia Pondasi vs. Multi Medika Internasional | Indonesia Pondasi vs. Visi Media Asia | Indonesia Pondasi vs. Bayan Resources 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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