Correlation Between IDX 30 and Kapuas Prima
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By analyzing existing cross correlation between IDX 30 Jakarta and Kapuas Prima Coal, you can compare the effects of market volatilities on IDX 30 and Kapuas Prima 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 Kapuas Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Kapuas Prima.
Diversification Opportunities for IDX 30 and Kapuas Prima
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Kapuas is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Kapuas Prima Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kapuas Prima Coal 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 Kapuas Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kapuas Prima Coal has no effect on the direction of IDX 30 i.e., IDX 30 and Kapuas Prima go up and down completely randomly.
Pair Corralation between IDX 30 and Kapuas Prima
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.31 times more return on investment than Kapuas Prima. However, IDX 30 Jakarta is 3.21 times less risky than Kapuas Prima. It trades about -0.26 of its potential returns per unit of risk. Kapuas Prima Coal is currently generating about -0.16 per unit of risk. If you would invest 47,624 in IDX 30 Jakarta on August 31, 2024 and sell it today you would lose (2,849) from holding IDX 30 Jakarta or give up 5.98% 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. Kapuas Prima Coal
Performance |
| Timeline |
IDX 30 and Kapuas Prima Volatility Contrast
Predicted Return Density |
| Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Kapuas Prima Coal
Pair trading matchups for Kapuas Prima
Pair Trading with IDX 30 and Kapuas Prima
The main advantage of trading using opposite IDX 30 and Kapuas Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Kapuas Prima 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 Kapuas Prima will offset losses from the drop in Kapuas Prima's long position.| IDX 30 vs. Victoria Insurance Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. PT Data Sinergitama | IDX 30 vs. Garudafood Putra Putri |
| Kapuas Prima vs. Perusahaan Gas Negara | Kapuas Prima vs. Vale Indonesia Tbk | Kapuas Prima vs. Telkom Indonesia Tbk | Kapuas Prima vs. Mitra Pinasthika Mustika |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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