Correlation Between IDX 30 and Kedawung Setia
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By analyzing existing cross correlation between IDX 30 Jakarta and Kedawung Setia Industrial, you can compare the effects of market volatilities on IDX 30 and Kedawung Setia 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 Kedawung Setia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Kedawung Setia.
Diversification Opportunities for IDX 30 and Kedawung Setia
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between IDX and Kedawung is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Kedawung Setia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kedawung Setia Industrial 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 Kedawung Setia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kedawung Setia Industrial has no effect on the direction of IDX 30 i.e., IDX 30 and Kedawung Setia go up and down completely randomly.
Pair Corralation between IDX 30 and Kedawung Setia
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Kedawung Setia. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.43 times less risky than Kedawung Setia. The index trades about -0.1 of its potential returns per unit of risk. The Kedawung Setia Industrial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 37,500 in Kedawung Setia Industrial on August 28, 2024 and sell it today you would earn a total of 6,500 from holding Kedawung Setia Industrial or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Kedawung Setia Industrial
Performance |
| Timeline |
IDX 30 and Kedawung Setia Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Kedawung Setia Industrial
Pair trading matchups for Kedawung Setia
Pair Trading with IDX 30 and Kedawung Setia
The main advantage of trading using opposite IDX 30 and Kedawung Setia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Kedawung Setia 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 Kedawung Setia will offset losses from the drop in Kedawung Setia'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 |
| Kedawung Setia vs. Kedaung Indah Can | Kedawung Setia vs. Langgeng Makmur Industri | Kedawung Setia vs. Kabelindo Murni Tbk | Kedawung Setia vs. Mustika Ratu 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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