Correlation Between IDX 30 and Cisadane Sawit
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By analyzing existing cross correlation between IDX 30 Jakarta and Cisadane Sawit Raya, you can compare the effects of market volatilities on IDX 30 and Cisadane Sawit 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 Cisadane Sawit. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Cisadane Sawit.
Diversification Opportunities for IDX 30 and Cisadane Sawit
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDX and Cisadane is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Cisadane Sawit Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisadane Sawit Raya 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 Cisadane Sawit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisadane Sawit Raya has no effect on the direction of IDX 30 i.e., IDX 30 and Cisadane Sawit go up and down completely randomly.
Pair Corralation between IDX 30 and Cisadane Sawit
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Cisadane Sawit. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.52 times less risky than Cisadane Sawit. The index trades about -0.15 of its potential returns per unit of risk. The Cisadane Sawit Raya is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 60,500 in Cisadane Sawit Raya on September 15, 2024 and sell it today you would earn a total of 14,000 from holding Cisadane Sawit Raya or generate 23.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IDX 30 Jakarta vs. Cisadane Sawit Raya
Performance |
Timeline |
IDX 30 and Cisadane Sawit Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Cisadane Sawit Raya
Pair trading matchups for Cisadane Sawit
Pair Trading with IDX 30 and Cisadane Sawit
The main advantage of trading using opposite IDX 30 and Cisadane Sawit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Cisadane Sawit 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 Cisadane Sawit will offset losses from the drop in Cisadane Sawit's long position.IDX 30 vs. Trinitan Metals and | IDX 30 vs. Smartfren Telecom Tbk | IDX 30 vs. Indosterling Technomedia Tbk | IDX 30 vs. Ciptadana Asset Management |
Cisadane Sawit vs. Dharma Satya Nusantara | Cisadane Sawit vs. Austindo Nusantara Jaya | Cisadane Sawit vs. Provident Agro Tbk | Cisadane Sawit vs. Sawit Sumbermas Sarana |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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