Correlation Between IDX 30 and Tower Bersama
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By analyzing existing cross correlation between IDX 30 Jakarta and Tower Bersama Infrastructure, you can compare the effects of market volatilities on IDX 30 and Tower Bersama 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 Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Tower Bersama.
Diversification Opportunities for IDX 30 and Tower Bersama
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Tower is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras 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 Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of IDX 30 i.e., IDX 30 and Tower Bersama go up and down completely randomly.
Pair Corralation between IDX 30 and Tower Bersama
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Tower Bersama. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.25 times less risky than Tower Bersama. The index trades about -0.31 of its potential returns per unit of risk. The Tower Bersama Infrastructure is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 190,000 in Tower Bersama Infrastructure on September 1, 2024 and sell it today you would earn a total of 4,500 from holding Tower Bersama Infrastructure or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IDX 30 Jakarta vs. Tower Bersama Infrastructure
Performance |
| Timeline |
IDX 30 and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Tower Bersama Infrastructure
Pair trading matchups for Tower Bersama
Pair Trading with IDX 30 and Tower Bersama
The main advantage of trading using opposite IDX 30 and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama'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 |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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