Correlation Between IDX 30 and Bank Windu
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By analyzing existing cross correlation between IDX 30 Jakarta and Bank Windu Kentjana, you can compare the effects of market volatilities on IDX 30 and Bank Windu 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 Bank Windu. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bank Windu.
Diversification Opportunities for IDX 30 and Bank Windu
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IDX and Bank is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bank Windu Kentjana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Windu Kentjana 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 Bank Windu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Windu Kentjana has no effect on the direction of IDX 30 i.e., IDX 30 and Bank Windu go up and down completely randomly.
Pair Corralation between IDX 30 and Bank Windu
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Bank Windu. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.59 times less risky than Bank Windu. The index trades about -0.28 of its potential returns per unit of risk. The Bank Windu Kentjana is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,000 in Bank Windu Kentjana on August 29, 2024 and sell it today you would lose (100.00) from holding Bank Windu Kentjana or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bank Windu Kentjana
Performance |
| Timeline |
IDX 30 and Bank Windu Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bank Windu Kentjana
Pair trading matchups for Bank Windu
Pair Trading with IDX 30 and Bank Windu
The main advantage of trading using opposite IDX 30 and Bank Windu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bank Windu 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 Bank Windu will offset losses from the drop in Bank Windu'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 |
| Bank Windu vs. Bank Mayapada Internasional | Bank Windu vs. Bank Artha Graha | Bank Windu vs. Bank Pembangunan Daerah | Bank Windu vs. Bank Mega 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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