Correlation Between IDX 30 and Nanotech Indonesia
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By analyzing existing cross correlation between IDX 30 Jakarta and Nanotech Indonesia Global, you can compare the effects of market volatilities on IDX 30 and Nanotech Indonesia 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 Nanotech Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Nanotech Indonesia.
Diversification Opportunities for IDX 30 and Nanotech Indonesia
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Nanotech is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Nanotech Indonesia Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanotech Indonesia Global 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 Nanotech Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanotech Indonesia Global has no effect on the direction of IDX 30 i.e., IDX 30 and Nanotech Indonesia go up and down completely randomly.
Pair Corralation between IDX 30 and Nanotech Indonesia
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Nanotech Indonesia. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 4.21 times less risky than Nanotech Indonesia. The index trades about -0.03 of its potential returns per unit of risk. The Nanotech Indonesia Global is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Nanotech Indonesia Global on September 2, 2024 and sell it today you would lose (100.00) from holding Nanotech Indonesia Global or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Nanotech Indonesia Global
Performance |
| Timeline |
IDX 30 and Nanotech Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Nanotech Indonesia Global
Pair trading matchups for Nanotech Indonesia
Pair Trading with IDX 30 and Nanotech Indonesia
The main advantage of trading using opposite IDX 30 and Nanotech Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Nanotech Indonesia 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 Nanotech Indonesia will offset losses from the drop in Nanotech Indonesia's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. PT Jobubu Jarum |
| Nanotech Indonesia vs. Sumber Tani Agung | Nanotech Indonesia vs. Dayamitra Telekomunikasi PT | Nanotech Indonesia vs. Wahana Inti MakmurTbk | Nanotech Indonesia vs. Wir Asia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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