Correlation Between IDX 30 and Total Bangun
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By analyzing existing cross correlation between IDX 30 Jakarta and Total Bangun Persada, you can compare the effects of market volatilities on IDX 30 and Total Bangun 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 Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Total Bangun.
Diversification Opportunities for IDX 30 and Total Bangun
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDX and Total is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada 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 Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of IDX 30 i.e., IDX 30 and Total Bangun go up and down completely randomly.
Pair Corralation between IDX 30 and Total Bangun
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Total Bangun. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 3.6 times less risky than Total Bangun. The index trades about -0.16 of its potential returns per unit of risk. The Total Bangun Persada is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64,000 in Total Bangun Persada on August 31, 2024 and sell it today you would earn a total of 4,500 from holding Total Bangun Persada or generate 7.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IDX 30 Jakarta vs. Total Bangun Persada
Performance |
Timeline |
IDX 30 and Total Bangun Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Total Bangun Persada
Pair trading matchups for Total Bangun
Pair Trading with IDX 30 and Total Bangun
The main advantage of trading using opposite IDX 30 and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Total Bangun 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 Total Bangun will offset losses from the drop in Total Bangun'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 |
Total Bangun vs. Kawasan Industri Jababeka | Total Bangun vs. Adhi Karya Persero | Total Bangun vs. Ciputra Development Tbk | Total Bangun vs. Solusi Bangun 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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