Correlation Between IDX 30 and Asia Pacific
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By analyzing existing cross correlation between IDX 30 Jakarta and Asia Pacific Fibers, you can compare the effects of market volatilities on IDX 30 and Asia Pacific 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 Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Asia Pacific.
Diversification Opportunities for IDX 30 and Asia Pacific
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDX and Asia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Asia Pacific Fibers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Fibers 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 Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Fibers has no effect on the direction of IDX 30 i.e., IDX 30 and Asia Pacific go up and down completely randomly.
Pair Corralation between IDX 30 and Asia Pacific
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.28 times more return on investment than Asia Pacific. However, IDX 30 Jakarta is 3.55 times less risky than Asia Pacific. It trades about -0.03 of its potential returns per unit of risk. Asia Pacific Fibers is currently generating about -0.07 per unit of risk. If you would invest 51,208 in IDX 30 Jakarta on August 25, 2024 and sell it today you would lose (6,341) from holding IDX 30 Jakarta or give up 12.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Asia Pacific Fibers
Performance |
| Timeline |
IDX 30 and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Asia Pacific Fibers
Pair trading matchups for Asia Pacific
Pair Trading with IDX 30 and Asia Pacific
The main advantage of trading using opposite IDX 30 and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Weha Transportasi Indonesia |
| Asia Pacific vs. PT Sreeya Sewu | Asia Pacific vs. Multistrada Arah Sarana | Asia Pacific vs. Polychem Indonesia Tbk | Asia Pacific vs. Pan Brothers 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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