Correlation Between IDX 30 and Star Pacific
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By analyzing existing cross correlation between IDX 30 Jakarta and Star Pacific Tbk, you can compare the effects of market volatilities on IDX 30 and Star Pacific 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 Star Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Star Pacific.
Diversification Opportunities for IDX 30 and Star Pacific
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Star is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Star Pacific Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Pacific Tbk 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 Star Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Pacific Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Star Pacific go up and down completely randomly.
Pair Corralation between IDX 30 and Star Pacific
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Star Pacific. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.02 times less risky than Star Pacific. The index trades about -0.01 of its potential returns per unit of risk. The Star Pacific Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 28,800 in Star Pacific Tbk on August 30, 2024 and sell it today you would lose (2,800) from holding Star Pacific Tbk or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Star Pacific Tbk
Performance |
| Timeline |
IDX 30 and Star Pacific Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Star Pacific Tbk
Pair trading matchups for Star Pacific
Pair Trading with IDX 30 and Star Pacific
The main advantage of trading using opposite IDX 30 and Star Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Star Pacific 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 Star Pacific will offset losses from the drop in Star Pacific's long position.| IDX 30 vs. Trinitan Metals and | IDX 30 vs. Lotte Chemical Titan | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. HK Metals Utama |
| Star Pacific vs. Lenox Pasifik Investama | Star Pacific vs. Multipolar Tbk | Star Pacific vs. Lautan Luas Tbk | Star Pacific vs. Metrodata Electronics 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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