Correlation Between IDX 30 and Sekar Bumi
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By analyzing existing cross correlation between IDX 30 Jakarta and Sekar Bumi Tbk, you can compare the effects of market volatilities on IDX 30 and Sekar Bumi 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 Sekar Bumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Sekar Bumi.
Diversification Opportunities for IDX 30 and Sekar Bumi
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Sekar is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Sekar Bumi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekar Bumi 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 Sekar Bumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekar Bumi Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Sekar Bumi go up and down completely randomly.
Pair Corralation between IDX 30 and Sekar Bumi
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Sekar Bumi. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 5.35 times less risky than Sekar Bumi. The index trades about -0.04 of its potential returns per unit of risk. The Sekar Bumi Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28,273 in Sekar Bumi Tbk on September 4, 2024 and sell it today you would earn a total of 12,327 from holding Sekar Bumi Tbk or generate 43.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Sekar Bumi Tbk
Performance |
| Timeline |
IDX 30 and Sekar Bumi Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Sekar Bumi Tbk
Pair trading matchups for Sekar Bumi
Pair Trading with IDX 30 and Sekar Bumi
The main advantage of trading using opposite IDX 30 and Sekar Bumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Sekar Bumi 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 Sekar Bumi will offset losses from the drop in Sekar Bumi's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Communication Cable Systems | IDX 30 vs. Lion Metal Works |
| Sekar Bumi vs. Astra International Tbk | Sekar Bumi vs. Unilever Indonesia Tbk | Sekar Bumi vs. Telkom Indonesia Tbk | Sekar Bumi vs. Bank Mandiri Persero |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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