Correlation Between Indo Acidatama and IDX 30
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By analyzing existing cross correlation between Indo Acidatama Tbk and IDX 30 Jakarta, you can compare the effects of market volatilities on Indo Acidatama and IDX 30 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 Indo Acidatama with a short position of IDX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and IDX 30.
Diversification Opportunities for Indo Acidatama and IDX 30
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indo and IDX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and IDX 30 Jakarta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDX 30 Jakarta and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with IDX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDX 30 Jakarta has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and IDX 30 go up and down completely randomly.
Pair Corralation between Indo Acidatama and IDX 30
Assuming the 90 days trading horizon Indo Acidatama Tbk is expected to generate 1.12 times more return on investment than IDX 30. However, Indo Acidatama is 1.12 times more volatile than IDX 30 Jakarta. It trades about -0.09 of its potential returns per unit of risk. IDX 30 Jakarta is currently generating about -0.43 per unit of risk. If you would invest 5,100 in Indo Acidatama Tbk on August 25, 2024 and sell it today you would lose (100.00) from holding Indo Acidatama Tbk or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Indo Acidatama Tbk vs. IDX 30 Jakarta
Performance |
| Timeline |
Indo Acidatama and IDX 30 Volatility Contrast
Predicted Return Density |
| Returns |
Indo Acidatama Tbk
Pair trading matchups for Indo Acidatama
IDX 30 Jakarta
Pair trading matchups for IDX 30
Pair Trading with Indo Acidatama and IDX 30
The main advantage of trading using opposite Indo Acidatama and IDX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, IDX 30 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 IDX 30 will offset losses from the drop in IDX 30's long position.| Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma Tbk |
| IDX 30 vs. Lippo General Insurance | IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. Indo Acidatama Tbk | IDX 30 vs. Weha Transportasi Indonesia |
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 Stocks Directory module to find actively traded stocks across global markets.
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