Correlation Between IDX 30 and Panca Budi
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By analyzing existing cross correlation between IDX 30 Jakarta and Panca Budi Idaman, you can compare the effects of market volatilities on IDX 30 and Panca Budi 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 Panca Budi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Panca Budi.
Diversification Opportunities for IDX 30 and Panca Budi
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IDX and Panca is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Panca Budi Idaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Budi Idaman 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 Panca Budi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Budi Idaman has no effect on the direction of IDX 30 i.e., IDX 30 and Panca Budi go up and down completely randomly.
Pair Corralation between IDX 30 and Panca Budi
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Panca Budi. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 49.14 times less risky than Panca Budi. The index trades about -0.04 of its potential returns per unit of risk. The Panca Budi Idaman is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 33,959 in Panca Budi Idaman on November 19, 2024 and sell it today you would earn a total of 16,041 from holding Panca Budi Idaman or generate 47.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Panca Budi Idaman
Performance |
| Timeline |
IDX 30 and Panca Budi Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Panca Budi Idaman
Pair trading matchups for Panca Budi
Pair Trading with IDX 30 and Panca Budi
The main advantage of trading using opposite IDX 30 and Panca Budi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Panca Budi 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 Panca Budi will offset losses from the drop in Panca Budi's long position.| IDX 30 vs. Lotte Chemical Titan | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Krakatau Steel Persero | IDX 30 vs. Hero Supermarket Tbk |
| Panca Budi vs. Mitrabara Adiperdana PT | Panca Budi vs. Mark Dynamics Indonesia | Panca Budi vs. Prodia Widyahusada Tbk | Panca Budi vs. Selamat Sempurna 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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