Correlation Between IDX 30 and Sinar Mas
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By analyzing existing cross correlation between IDX 30 Jakarta and Sinar Mas Agro, you can compare the effects of market volatilities on IDX 30 and Sinar Mas 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 Sinar Mas. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Sinar Mas.
Diversification Opportunities for IDX 30 and Sinar Mas
Very good diversification
The 3 months correlation between IDX and Sinar is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Sinar Mas Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinar Mas Agro 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 Sinar Mas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinar Mas Agro has no effect on the direction of IDX 30 i.e., IDX 30 and Sinar Mas go up and down completely randomly.
Pair Corralation between IDX 30 and Sinar Mas
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Sinar Mas. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.72 times less risky than Sinar Mas. The index trades about 0.0 of its potential returns per unit of risk. The Sinar Mas Agro is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 347,815 in Sinar Mas Agro on September 2, 2024 and sell it today you would earn a total of 45,185 from holding Sinar Mas Agro or generate 12.99% 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. Sinar Mas Agro
Performance |
| Timeline |
IDX 30 and Sinar Mas Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Sinar Mas Agro
Pair trading matchups for Sinar Mas
Pair Trading with IDX 30 and Sinar Mas
The main advantage of trading using opposite IDX 30 and Sinar Mas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Sinar Mas 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 Sinar Mas will offset losses from the drop in Sinar Mas' long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. Metro Healthcare Indonesia | IDX 30 vs. PT Jobubu Jarum |
| Sinar Mas vs. Bank BRISyariah Tbk | Sinar Mas vs. Mitra Pinasthika Mustika | Sinar Mas vs. Jakarta Int Hotels | Sinar Mas vs. Indosterling Technomedia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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