Correlation Between IDX 30 and Emdeki Utama
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By analyzing existing cross correlation between IDX 30 Jakarta and Emdeki Utama Tbk, you can compare the effects of market volatilities on IDX 30 and Emdeki Utama 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 Emdeki Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Emdeki Utama.
Diversification Opportunities for IDX 30 and Emdeki Utama
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IDX and Emdeki is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Emdeki Utama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdeki Utama 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 Emdeki Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdeki Utama Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Emdeki Utama go up and down completely randomly.
Pair Corralation between IDX 30 and Emdeki Utama
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Emdeki Utama. In addition to that, IDX 30 is 1.2 times more volatile than Emdeki Utama Tbk. It trades about -0.28 of its total potential returns per unit of risk. Emdeki Utama Tbk is currently generating about -0.2 per unit of volatility. If you would invest 18,400 in Emdeki Utama Tbk on August 28, 2024 and sell it today you would lose (700.00) from holding Emdeki Utama Tbk or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Emdeki Utama Tbk
Performance |
| Timeline |
IDX 30 and Emdeki Utama Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Emdeki Utama Tbk
Pair trading matchups for Emdeki Utama
Pair Trading with IDX 30 and Emdeki Utama
The main advantage of trading using opposite IDX 30 and Emdeki Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Emdeki Utama 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 Emdeki Utama will offset losses from the drop in Emdeki Utama'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 |
| Emdeki Utama vs. Kedaung Indah Can | Emdeki Utama vs. Langgeng Makmur Industri | Emdeki Utama vs. Kabelindo Murni Tbk | Emdeki Utama 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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