Correlation Between IDX 30 and Malacca Trust
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By analyzing existing cross correlation between IDX 30 Jakarta and Malacca Trust Wuwungan, you can compare the effects of market volatilities on IDX 30 and Malacca Trust 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 Malacca Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Malacca Trust.
Diversification Opportunities for IDX 30 and Malacca Trust
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Malacca is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Malacca Trust Wuwungan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Trust Wuwungan 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 Malacca Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Trust Wuwungan has no effect on the direction of IDX 30 i.e., IDX 30 and Malacca Trust go up and down completely randomly.
Pair Corralation between IDX 30 and Malacca Trust
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Malacca Trust. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 2.24 times less risky than Malacca Trust. The index trades about -0.14 of its potential returns per unit of risk. The Malacca Trust Wuwungan is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 16,100 in Malacca Trust Wuwungan on November 28, 2024 and sell it today you would lose (1,300) from holding Malacca Trust Wuwungan or give up 8.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Malacca Trust Wuwungan
Performance |
| Timeline |
IDX 30 and Malacca Trust Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Malacca Trust Wuwungan
Pair trading matchups for Malacca Trust
Pair Trading with IDX 30 and Malacca Trust
The main advantage of trading using opposite IDX 30 and Malacca Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Malacca Trust 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 Malacca Trust will offset losses from the drop in Malacca Trust's long position.| IDX 30 vs. Ciptadana Asset Management | IDX 30 vs. Victoria Insurance Tbk | IDX 30 vs. Tridomain Performance Materials | IDX 30 vs. Weha Transportasi Indonesia |
| Malacca Trust vs. Asuransi Jiwa Syariah | Malacca Trust vs. Kioson Komersial Indonesia | Malacca Trust vs. Victoria Insurance Tbk | Malacca Trust vs. Megapower Makmur 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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