Correlation Between IDX 30 and Bank Nationalnobu
Specify exactly 2 symbols:
By analyzing existing cross correlation between IDX 30 Jakarta and Bank Nationalnobu Tbk, you can compare the effects of market volatilities on IDX 30 and Bank Nationalnobu 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 Nationalnobu. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bank Nationalnobu.
Diversification Opportunities for IDX 30 and Bank Nationalnobu
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Bank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bank Nationalnobu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Nationalnobu 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 Bank Nationalnobu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Nationalnobu Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Bank Nationalnobu go up and down completely randomly.
Pair Corralation between IDX 30 and Bank Nationalnobu
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Bank Nationalnobu. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.71 times less risky than Bank Nationalnobu. The index trades about -0.24 of its potential returns per unit of risk. The Bank Nationalnobu Tbk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 64,500 in Bank Nationalnobu Tbk on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Bank Nationalnobu Tbk or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bank Nationalnobu Tbk
Performance |
| Timeline |
IDX 30 and Bank Nationalnobu Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bank Nationalnobu Tbk
Pair trading matchups for Bank Nationalnobu
Pair Trading with IDX 30 and Bank Nationalnobu
The main advantage of trading using opposite IDX 30 and Bank Nationalnobu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bank Nationalnobu 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 Nationalnobu will offset losses from the drop in Bank Nationalnobu's long position.| IDX 30 vs. Weha Transportasi Indonesia | IDX 30 vs. PT Boston Furniture | IDX 30 vs. Yelooo Integra Datanet | IDX 30 vs. Surya Citra Media |
| Bank Nationalnobu vs. Humpuss Intermoda Transportasi | Bank Nationalnobu vs. Hero Supermarket Tbk | Bank Nationalnobu vs. Anabatic Technologies Tbk | Bank Nationalnobu vs. Kedawung Setia Industrial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |