Correlation Between IDX 30 and Supreme Cable
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By analyzing existing cross correlation between IDX 30 Jakarta and Supreme Cable Manufacturing, you can compare the effects of market volatilities on IDX 30 and Supreme Cable 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 Supreme Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Supreme Cable.
Diversification Opportunities for IDX 30 and Supreme Cable
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Supreme is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Supreme Cable Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supreme Cable Manufa 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 Supreme Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supreme Cable Manufa has no effect on the direction of IDX 30 i.e., IDX 30 and Supreme Cable go up and down completely randomly.
Pair Corralation between IDX 30 and Supreme Cable
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Supreme Cable. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.44 times less risky than Supreme Cable. The index trades about -0.6 of its potential returns per unit of risk. The Supreme Cable Manufacturing is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 222,000 in Supreme Cable Manufacturing on August 24, 2024 and sell it today you would lose (2,000) from holding Supreme Cable Manufacturing or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Supreme Cable Manufacturing
Performance |
| Timeline |
IDX 30 and Supreme Cable Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Supreme Cable Manufacturing
Pair trading matchups for Supreme Cable
Pair Trading with IDX 30 and Supreme Cable
The main advantage of trading using opposite IDX 30 and Supreme Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Supreme Cable 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 Supreme Cable will offset losses from the drop in Supreme Cable's long position.| IDX 30 vs. Surya Citra Media | IDX 30 vs. Envy Technologies Indonesia | IDX 30 vs. Gunawan Dianjaya Steel | IDX 30 vs. Nanotech Indonesia Global |
| Supreme Cable vs. Voksel Electric Tbk | Supreme Cable vs. Kmi Wire And | Supreme Cable vs. Kabelindo Murni Tbk | Supreme Cable vs. Selamat Sempurna 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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