Correlation Between IDX 30 and Gihon Telekomunikasi
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By analyzing existing cross correlation between IDX 30 Jakarta and Gihon Telekomunikasi Indonesia, you can compare the effects of market volatilities on IDX 30 and Gihon Telekomunikasi 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 Gihon Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Gihon Telekomunikasi.
Diversification Opportunities for IDX 30 and Gihon Telekomunikasi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDX and Gihon is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Gihon Telekomunikasi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gihon Telekomunikasi 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 Gihon Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gihon Telekomunikasi has no effect on the direction of IDX 30 i.e., IDX 30 and Gihon Telekomunikasi go up and down completely randomly.
Pair Corralation between IDX 30 and Gihon Telekomunikasi
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the Gihon Telekomunikasi. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.67 times less risky than Gihon Telekomunikasi. The index trades about -0.02 of its potential returns per unit of risk. The Gihon Telekomunikasi Indonesia is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 185,500 in Gihon Telekomunikasi Indonesia on February 6, 2024 and sell it today you would lose (5,500) from holding Gihon Telekomunikasi Indonesia or give up 2.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.12% |
Values | Daily Returns |
IDX 30 Jakarta vs. Gihon Telekomunikasi Indonesia
Performance |
Timeline |
IDX 30 and Gihon Telekomunikasi Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Gihon Telekomunikasi Indonesia
Pair trading matchups for Gihon Telekomunikasi
Pair Trading with IDX 30 and Gihon Telekomunikasi
The main advantage of trading using opposite IDX 30 and Gihon Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Gihon Telekomunikasi 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 Gihon Telekomunikasi will offset losses from the drop in Gihon Telekomunikasi's long position.IDX 30 vs. Dharma Polimetal Tbk | IDX 30 vs. Trinitan Metals and | IDX 30 vs. Inocycle Technology Tbk | IDX 30 vs. Capital Financial Indonesia |
Gihon Telekomunikasi vs. Energi Mega Persada | Gihon Telekomunikasi vs. Bakrie Brothers Tbk | Gihon Telekomunikasi vs. Medco Energi Internasional |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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