Correlation Between IDX 30 and Lippo General
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By analyzing existing cross correlation between IDX 30 Jakarta and Lippo General Insurance, you can compare the effects of market volatilities on IDX 30 and Lippo General 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 Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Lippo General.
Diversification Opportunities for IDX 30 and Lippo General
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IDX and Lippo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Lippo General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo General Insurance 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 Lippo General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo General Insurance has no effect on the direction of IDX 30 i.e., IDX 30 and Lippo General go up and down completely randomly.
Pair Corralation between IDX 30 and Lippo General
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Lippo General. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 53.26 times less risky than Lippo General. The index trades about -0.03 of its potential returns per unit of risk. The Lippo General Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 56,537 in Lippo General Insurance on August 25, 2024 and sell it today you would lose (20,137) from holding Lippo General Insurance or give up 35.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Lippo General Insurance
Performance |
| Timeline |
IDX 30 and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Lippo General Insurance
Pair trading matchups for Lippo General
Pair Trading with IDX 30 and Lippo General
The main advantage of trading using opposite IDX 30 and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Lippo General 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 Lippo General will offset losses from the drop in Lippo General's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Weha Transportasi Indonesia |
| Lippo General vs. Maskapai Reasuransi Indonesia | Lippo General vs. Lenox Pasifik Investama | Lippo General vs. Paninvest Tbk | Lippo General vs. Bank Mayapada Internasional |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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