Correlation Between IDX 30 and Suparma Tbk
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By analyzing existing cross correlation between IDX 30 Jakarta and Suparma Tbk, you can compare the effects of market volatilities on IDX 30 and Suparma Tbk 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 Suparma Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Suparma Tbk.
Diversification Opportunities for IDX 30 and Suparma Tbk
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDX and Suparma is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Suparma Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suparma 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 Suparma Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suparma Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Suparma Tbk go up and down completely randomly.
Pair Corralation between IDX 30 and Suparma Tbk
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Suparma Tbk. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.12 times less risky than Suparma Tbk. The index trades about -0.28 of its potential returns per unit of risk. The Suparma Tbk is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 32,000 in Suparma Tbk on August 28, 2024 and sell it today you would lose (2,000) from holding Suparma Tbk or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Suparma Tbk
Performance |
| Timeline |
IDX 30 and Suparma Tbk Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Suparma Tbk
Pair trading matchups for Suparma Tbk
Pair Trading with IDX 30 and Suparma Tbk
The main advantage of trading using opposite IDX 30 and Suparma Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Suparma Tbk 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 Suparma Tbk will offset losses from the drop in Suparma Tbk's long position.| IDX 30 vs. Ace Hardware Indonesia | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Steel Pipe Industry |
| Suparma Tbk vs. Trias Sentosa Tbk | Suparma Tbk vs. Slj Global Tbk | Suparma Tbk vs. PT Sreeya Sewu | Suparma Tbk vs. Indo Acidatama 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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