Correlation Between IDX 30 and PT Boston
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By analyzing existing cross correlation between IDX 30 Jakarta and PT Boston Furniture, you can compare the effects of market volatilities on IDX 30 and PT Boston 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 PT Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and PT Boston.
Diversification Opportunities for IDX 30 and PT Boston
Excellent diversification
The 3 months correlation between IDX and SOFA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and PT Boston Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Boston Furniture 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 PT Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Boston Furniture has no effect on the direction of IDX 30 i.e., IDX 30 and PT Boston go up and down completely randomly.
Pair Corralation between IDX 30 and PT Boston
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the PT Boston. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.87 times less risky than PT Boston. The index trades about -0.31 of its potential returns per unit of risk. The PT Boston Furniture is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 1,900 in PT Boston Furniture on September 1, 2024 and sell it today you would earn a total of 1,700 from holding PT Boston Furniture or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. PT Boston Furniture
Performance |
| Timeline |
IDX 30 and PT Boston Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
PT Boston Furniture
Pair trading matchups for PT Boston
Pair Trading with IDX 30 and PT Boston
The main advantage of trading using opposite IDX 30 and PT Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, PT Boston 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 PT Boston will offset losses from the drop in PT Boston's long position.| IDX 30 vs. Indorama Synthetics Tbk | IDX 30 vs. PT Hetzer Medical | IDX 30 vs. Alumindo Light Metal | IDX 30 vs. PT Bank Bisnis |
| PT Boston vs. Pt Pakuan Tbk | PT Boston vs. Integra Indocabinet Tbk | PT Boston vs. Multistrada Arah Sarana | PT Boston vs. PT MNC Energy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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