Correlation Between IDX 30 and Provident Agro
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By analyzing existing cross correlation between IDX 30 Jakarta and Provident Agro Tbk, you can compare the effects of market volatilities on IDX 30 and Provident Agro 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 Provident Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and Provident Agro.
Diversification Opportunities for IDX 30 and Provident Agro
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between IDX and Provident is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and Provident Agro Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Provident Agro Tbk 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 Provident Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Provident Agro Tbk has no effect on the direction of IDX 30 i.e., IDX 30 and Provident Agro go up and down completely randomly.
Pair Corralation between IDX 30 and Provident Agro
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to generate 0.25 times more return on investment than Provident Agro. However, IDX 30 Jakarta is 3.99 times less risky than Provident Agro. It trades about -0.12 of its potential returns per unit of risk. Provident Agro Tbk is currently generating about -0.12 per unit of risk. If you would invest 49,814 in IDX 30 Jakarta on February 7, 2024 and sell it today you would lose (4,079) from holding IDX 30 Jakarta or give up 8.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
IDX 30 Jakarta vs. Provident Agro Tbk
Performance |
Timeline |
IDX 30 and Provident Agro Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
Provident Agro Tbk
Pair trading matchups for Provident Agro
Pair Trading with IDX 30 and Provident Agro
The main advantage of trading using opposite IDX 30 and Provident Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, Provident Agro 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 Provident Agro will offset losses from the drop in Provident Agro's long position.IDX 30 vs. Bank Ocbc Nisp | IDX 30 vs. Merdeka Copper Gold | IDX 30 vs. Pertamina Geothermal Energy | IDX 30 vs. Surya Citra Media |
Provident Agro vs. Fast Food Indonesia | Provident Agro vs. Enseval Putra Megatrading | Provident Agro vs. Hexindo Adiperkasa Tbk | Provident Agro vs. Astra Graphia Tbk |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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