Correlation Between IDX 30 and Lancartama Sejati
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By analyzing existing cross correlation between IDX 30 Jakarta and Lancartama Sejati Tbk, you can compare the effects of market volatilities on IDX 30 and Lancartama Sejati 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 Lancartama Sejati. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Lancartama Sejati.
Diversification Opportunities for IDX 30 and Lancartama Sejati
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Lancartama is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Lancartama Sejati Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancartama Sejati 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 Lancartama Sejati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancartama Sejati Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Lancartama Sejati go up and down completely randomly.
Pair Corralation between IDX 30 and Lancartama Sejati
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Lancartama Sejati. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.4 times less risky than Lancartama Sejati. The index trades about -0.35 of its potential returns per unit of risk. The Lancartama Sejati Tbk is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Lancartama Sejati Tbk on September 4, 2024 and sell it today you would lose (100.00) from holding Lancartama Sejati Tbk or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Lancartama Sejati Tbk
Performance |
| Timeline |
IDX 30 and Lancartama Sejati Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Lancartama Sejati Tbk
Pair trading matchups for Lancartama Sejati
Pair Trading with IDX 30 and Lancartama Sejati
The main advantage of trading using opposite IDX 30 and Lancartama Sejati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Lancartama Sejati 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 Lancartama Sejati will offset losses from the drop in Lancartama Sejati'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 |
| Lancartama Sejati vs. Bima Sakti Pertiwi | Lancartama Sejati vs. Repower Asia Indonesia | Lancartama Sejati vs. Pollux Properti Indonesia | Lancartama Sejati vs. Gaya Abadi Sempurna |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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