Correlation Between IDX 30 and Arita Prima
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By analyzing existing cross correlation between IDX 30 Jakarta and Arita Prima Indonesia, you can compare the effects of market volatilities on IDX 30 and Arita 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 Arita Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Arita Prima.
Diversification Opportunities for IDX 30 and Arita Prima
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Arita is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Arita Prima Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arita Prima Indonesia 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 Arita Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arita Prima Indonesia has no effect on the direction of IDX 30 i.e., IDX 30 and Arita Prima go up and down completely randomly.
Pair Corralation between IDX 30 and Arita Prima
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Arita Prima. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.3 times less risky than Arita Prima. The index trades about -0.09 of its potential returns per unit of risk. The Arita Prima Indonesia is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 17,600 in Arita Prima Indonesia on September 12, 2024 and sell it today you would lose (300.00) from holding Arita Prima Indonesia or give up 1.7% 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. Arita Prima Indonesia
Performance |
Timeline |
IDX 30 and Arita Prima Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Arita Prima Indonesia
Pair trading matchups for Arita Prima
Pair Trading with IDX 30 and Arita Prima
The main advantage of trading using opposite IDX 30 and Arita Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Arita 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 Arita Prima will offset losses from the drop in Arita Prima's long position.IDX 30 vs. Hoffmen Cleanindo | IDX 30 vs. Panin Financial Tbk | IDX 30 vs. Lotte Chemical Titan | IDX 30 vs. PT Data Sinergitama |
Arita Prima vs. Bintang Mitra Semestaraya | Arita Prima vs. Alkindo Naratama Tbk | Arita Prima vs. Bayu Buana Tbk | Arita Prima vs. Austindo Nusantara Jaya |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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