Correlation Between IDX 30 and KL Technology
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By analyzing existing cross correlation between IDX 30 Jakarta and KL Technology, you can compare the effects of market volatilities on IDX 30 and KL Technology 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 KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and KL Technology.
Diversification Opportunities for IDX 30 and KL Technology
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between IDX and KLTE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology 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 KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of IDX 30 i.e., IDX 30 and KL Technology go up and down completely randomly.
Pair Corralation between IDX 30 and KL Technology
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the KL Technology. But the index apears to be less risky and, when comparing its historical volatility, IDX 30 Jakarta is 1.44 times less risky than KL Technology. The index trades about -0.03 of its potential returns per unit of risk. The KL Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,332 in KL Technology on February 1, 2024 and sell it today you would earn a total of 184.00 from holding KL Technology or generate 2.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.96% |
Values | Daily Returns |
IDX 30 Jakarta vs. KL Technology
Performance |
Timeline |
IDX 30 and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
KL Technology
Pair trading matchups for KL Technology
Pair Trading with IDX 30 and KL Technology
The main advantage of trading using opposite IDX 30 and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.IDX 30 vs. Garuda Metalindo Tbk | IDX 30 vs. HK Metals Utama | IDX 30 vs. Communication Cable Systems | IDX 30 vs. Prima Alloy Steel |
KL Technology vs. Public Bank Bhd | KL Technology vs. Hong Leong Bank | KL Technology vs. Sports Toto Berhad | KL Technology vs. Apollo Food Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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