Correlation Between IDX 30 and Putra Mandiri
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By analyzing existing cross correlation between IDX 30 Jakarta and Putra Mandiri Jembar, you can compare the effects of market volatilities on IDX 30 and Putra Mandiri 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 Putra Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Putra Mandiri.
Diversification Opportunities for IDX 30 and Putra Mandiri
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Putra is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Putra Mandiri Jembar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Mandiri Jembar 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 Putra Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Mandiri Jembar has no effect on the direction of IDX 30 i.e., IDX 30 and Putra Mandiri go up and down completely randomly.
Pair Corralation between IDX 30 and Putra Mandiri
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Putra Mandiri. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.32 times less risky than Putra Mandiri. The index trades about -0.3 of its potential returns per unit of risk. The Putra Mandiri Jembar is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 13,000 in Putra Mandiri Jembar on September 3, 2024 and sell it today you would lose (1,000.00) from holding Putra Mandiri Jembar or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Putra Mandiri Jembar
Performance |
| Timeline |
IDX 30 and Putra Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Putra Mandiri Jembar
Pair trading matchups for Putra Mandiri
Pair Trading with IDX 30 and Putra Mandiri
The main advantage of trading using opposite IDX 30 and Putra Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Putra Mandiri 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 Putra Mandiri will offset losses from the drop in Putra Mandiri's long position.| IDX 30 vs. Smartfren Telecom Tbk | IDX 30 vs. Hoffmen Cleanindo | IDX 30 vs. Hero Supermarket Tbk | IDX 30 vs. PT Bank Bisnis |
| Putra Mandiri vs. Adaro Minerals Indonesia | Putra Mandiri vs. Dharma Polimetal Tbk | Putra Mandiri vs. Wir Asia Tbk | Putra Mandiri vs. Adi Sarana Armada |
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