Correlation Between IDX 30 and Tunas Baru
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By analyzing existing cross correlation between IDX 30 Jakarta and Tunas Baru Lampung, you can compare the effects of market volatilities on IDX 30 and Tunas Baru 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 Tunas Baru. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Tunas Baru.
Diversification Opportunities for IDX 30 and Tunas Baru
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IDX and Tunas is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Tunas Baru Lampung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tunas Baru Lampung 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 Tunas Baru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tunas Baru Lampung has no effect on the direction of IDX 30 i.e., IDX 30 and Tunas Baru go up and down completely randomly.
Pair Corralation between IDX 30 and Tunas Baru
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Tunas Baru. In addition to that, IDX 30 is 1.03 times more volatile than Tunas Baru Lampung. It trades about -0.18 of its total potential returns per unit of risk. Tunas Baru Lampung is currently generating about -0.17 per unit of volatility. If you would invest 62,000 in Tunas Baru Lampung on December 1, 2024 and sell it today you would lose (8,500) from holding Tunas Baru Lampung or give up 13.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
IDX 30 Jakarta vs. Tunas Baru Lampung
Performance |
Timeline |
IDX 30 and Tunas Baru Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Tunas Baru Lampung
Pair trading matchups for Tunas Baru
Pair Trading with IDX 30 and Tunas Baru
The main advantage of trading using opposite IDX 30 and Tunas Baru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Tunas Baru 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 Tunas Baru will offset losses from the drop in Tunas Baru's long position.IDX 30 vs. Arkadia Digital Media | IDX 30 vs. HK Metals Utama | IDX 30 vs. Optima Prima Metal | IDX 30 vs. Merdeka Copper Gold |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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