Correlation Between IDX 30 and Reliance Securities
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By analyzing existing cross correlation between IDX 30 Jakarta and Reliance Securities Tbk, you can compare the effects of market volatilities on IDX 30 and Reliance Securities 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 Reliance Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Reliance Securities.
Diversification Opportunities for IDX 30 and Reliance Securities
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Reliance is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Reliance Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Securities 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 Reliance Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Securities Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Reliance Securities go up and down completely randomly.
Pair Corralation between IDX 30 and Reliance Securities
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Reliance Securities. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.58 times less risky than Reliance Securities. The index trades about -0.26 of its potential returns per unit of risk. The Reliance Securities Tbk is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 47,200 in Reliance Securities Tbk on August 31, 2024 and sell it today you would lose (2,600) from holding Reliance Securities Tbk or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Reliance Securities Tbk
Performance |
| Timeline |
IDX 30 and Reliance Securities Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Reliance Securities Tbk
Pair trading matchups for Reliance Securities
Pair Trading with IDX 30 and Reliance Securities
The main advantage of trading using opposite IDX 30 and Reliance Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Reliance Securities 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 Reliance Securities will offset losses from the drop in Reliance Securities' long position.| IDX 30 vs. Victoria Insurance Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Garudafood Putra Putri |
| Reliance Securities vs. Panca Global Securities | Reliance Securities vs. Panin Sekuritas Tbk | Reliance Securities vs. Trimegah Securities Tbk | Reliance Securities vs. Yulie Sekurindo 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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