Correlation Between IDX 30 and Repower Asia
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By analyzing existing cross correlation between IDX 30 Jakarta and Repower Asia Indonesia, you can compare the effects of market volatilities on IDX 30 and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Repower Asia.
Diversification Opportunities for IDX 30 and Repower Asia
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDX and Repower is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of IDX 30 i.e., IDX 30 and Repower Asia go up and down completely randomly.
Pair Corralation between IDX 30 and Repower Asia
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Repower Asia. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.9 times less risky than Repower Asia. The index trades about -0.12 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Repower Asia Indonesia on January 16, 2025 and sell it today you would earn a total of 1,400 from holding Repower Asia Indonesia or generate 175.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Repower Asia Indonesia
Performance |
| Timeline |
IDX 30 and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Repower Asia Indonesia
Pair trading matchups for Repower Asia
Pair Trading with IDX 30 and Repower Asia
The main advantage of trading using opposite IDX 30 and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia's long position.The idea behind IDX 30 Jakarta and Repower Asia Indonesia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Repower Asia vs. Global Mediacom Tbk | Repower Asia vs. HK Metals Utama | Repower Asia vs. Galva Technologies Tbk | Repower Asia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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