Correlation Between IDX 30 and Golden Eagle
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By analyzing existing cross correlation between IDX 30 Jakarta and Golden Eagle Energy, you can compare the effects of market volatilities on IDX 30 and Golden Eagle 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 Golden Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Golden Eagle.
Diversification Opportunities for IDX 30 and Golden Eagle
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Golden is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Golden Eagle Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Eagle Energy 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 Golden Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Eagle Energy has no effect on the direction of IDX 30 i.e., IDX 30 and Golden Eagle go up and down completely randomly.
Pair Corralation between IDX 30 and Golden Eagle
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Golden Eagle. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.02 times less risky than Golden Eagle. The index trades about -0.42 of its potential returns per unit of risk. The Golden Eagle Energy is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 73,500 in Golden Eagle Energy on August 26, 2024 and sell it today you would lose (2,000) from holding Golden Eagle Energy or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Golden Eagle Energy
Performance |
| Timeline |
IDX 30 and Golden Eagle Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Golden Eagle Energy
Pair trading matchups for Golden Eagle
Pair Trading with IDX 30 and Golden Eagle
The main advantage of trading using opposite IDX 30 and Golden Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Golden Eagle 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 Golden Eagle will offset losses from the drop in Golden Eagle's long position.| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Weha Transportasi Indonesia |
| Golden Eagle vs. Petrosea Tbk | Golden Eagle vs. Harum Energy Tbk | Golden Eagle vs. Perdana Karya Perkasa | Golden Eagle vs. Samindo Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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