Correlation Between IDX 30 and ICEX Main
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By analyzing existing cross correlation between IDX 30 Jakarta and ICEX Main, you can compare the effects of market volatilities on IDX 30 and ICEX Main 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 ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDX 30 and ICEX Main.
Diversification Opportunities for IDX 30 and ICEX Main
Weak diversification
The 3 months correlation between IDX and ICEX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding IDX 30 Jakarta and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main 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 ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of IDX 30 i.e., IDX 30 and ICEX Main go up and down completely randomly.
Pair Corralation between IDX 30 and ICEX Main
Assuming the 90 days trading horizon IDX 30 Jakarta is expected to under-perform the ICEX Main. In addition to that, IDX 30 is 2.06 times more volatile than ICEX Main. It trades about -0.28 of its total potential returns per unit of risk. ICEX Main is currently generating about 0.17 per unit of volatility. If you would invest 204,496 in ICEX Main on February 4, 2024 and sell it today you would earn a total of 5,439 from holding ICEX Main or generate 2.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 76.19% |
Values | Daily Returns |
IDX 30 Jakarta vs. ICEX Main
Performance |
Timeline |
IDX 30 and ICEX Main Volatility Contrast
Predicted Return Density |
Returns |
IDX 30 Jakarta
Pair trading matchups for IDX 30
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with IDX 30 and ICEX Main
The main advantage of trading using opposite IDX 30 and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDX 30 position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.IDX 30 vs. Lion Metal Works | IDX 30 vs. Optima Prima Metal | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Bank Bisnis |
ICEX Main vs. Alvotech | ICEX Main vs. Kvika banki hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Iceland Seafood International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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