Correlation Between IDX 30 and Indonesia Fibreboard
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By analyzing existing cross correlation between IDX 30 Jakarta and Indonesia Fibreboard Industry, you can compare the effects of market volatilities on IDX 30 and Indonesia Fibreboard 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 Fibreboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Indonesia Fibreboard.
Diversification Opportunities for IDX 30 and Indonesia Fibreboard
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IDX and Indonesia is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Indonesia Fibreboard Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Fibreboard 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 Fibreboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Fibreboard has no effect on the direction of IDX 30 i.e., IDX 30 and Indonesia Fibreboard go up and down completely randomly.
Pair Corralation between IDX 30 and Indonesia Fibreboard
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Indonesia Fibreboard. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.62 times less risky than Indonesia Fibreboard. The index trades about -0.03 of its potential returns per unit of risk. The Indonesia Fibreboard Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 13,867 in Indonesia Fibreboard Industry on September 4, 2024 and sell it today you would earn a total of 5,733 from holding Indonesia Fibreboard Industry or generate 41.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Indonesia Fibreboard Industry
Performance |
| Timeline |
IDX 30 and Indonesia Fibreboard Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Indonesia Fibreboard Industry
Pair trading matchups for Indonesia Fibreboard
Pair Trading with IDX 30 and Indonesia Fibreboard
The main advantage of trading using opposite IDX 30 and Indonesia Fibreboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Indonesia Fibreboard 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 Fibreboard will offset losses from the drop in Indonesia Fibreboard's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Communication Cable Systems | IDX 30 vs. Lion Metal Works |
| Indonesia Fibreboard vs. Gunung Raja Paksi | Indonesia Fibreboard vs. Satyamitra Kemas Lestari | Indonesia Fibreboard vs. Ifishdeco PT | Indonesia Fibreboard vs. Saraswanti Anugerah Makmur |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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