Correlation Between IDX 30 and PT Indofood
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By analyzing existing cross correlation between IDX 30 Jakarta and PT Indofood Sukses, you can compare the effects of market volatilities on IDX 30 and PT Indofood 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 PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and PT Indofood.
Diversification Opportunities for IDX 30 and PT Indofood
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDX and INDF is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and PT Indofood Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indofood Sukses 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 PT Indofood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indofood Sukses has no effect on the direction of IDX 30 i.e., IDX 30 and PT Indofood go up and down completely randomly.
Pair Corralation between IDX 30 and PT Indofood
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the PT Indofood. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.31 times less risky than PT Indofood. The index trades about -0.03 of its potential returns per unit of risk. The PT Indofood Sukses is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 610,046 in PT Indofood Sukses on August 28, 2024 and sell it today you would earn a total of 144,954 from holding PT Indofood Sukses or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. PT Indofood Sukses
Performance |
| Timeline |
IDX 30 and PT Indofood Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
PT Indofood Sukses
Pair trading matchups for PT Indofood
Pair Trading with IDX 30 and PT Indofood
The main advantage of trading using opposite IDX 30 and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, PT Indofood 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 PT Indofood will offset losses from the drop in PT Indofood's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Steel Pipe Industry |
| PT Indofood vs. Astra International Tbk | PT Indofood vs. Unilever Indonesia Tbk | PT Indofood vs. Telkom Indonesia Tbk | PT Indofood vs. Bank Mandiri Persero |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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