Correlation Between IDX 30 and Bukit Asam
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By analyzing existing cross correlation between IDX 30 Jakarta and Bukit Asam Tbk, you can compare the effects of market volatilities on IDX 30 and Bukit Asam 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 Bukit Asam. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Bukit Asam.
Diversification Opportunities for IDX 30 and Bukit Asam
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Bukit is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Bukit Asam Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Asam 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 Bukit Asam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Asam Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Bukit Asam go up and down completely randomly.
Pair Corralation between IDX 30 and Bukit Asam
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Bukit Asam. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.59 times less risky than Bukit Asam. The index trades about -0.28 of its potential returns per unit of risk. The Bukit Asam Tbk is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 287,000 in Bukit Asam Tbk on August 28, 2024 and sell it today you would lose (10,000) from holding Bukit Asam Tbk or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Bukit Asam Tbk
Performance |
| Timeline |
IDX 30 and Bukit Asam Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Bukit Asam Tbk
Pair trading matchups for Bukit Asam
Pair Trading with IDX 30 and Bukit Asam
The main advantage of trading using opposite IDX 30 and Bukit Asam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Bukit Asam 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 Bukit Asam will offset losses from the drop in Bukit Asam's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Steel Pipe Industry |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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