Correlation Between ISEQ 20 and IDX 30
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By analyzing existing cross correlation between ISEQ 20 Price and IDX 30 Jakarta, you can compare the effects of market volatilities on ISEQ 20 and IDX 30 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 ISEQ 20 with a short position of IDX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISEQ 20 and IDX 30.
Diversification Opportunities for ISEQ 20 and IDX 30
Very good diversification
The 3 months correlation between ISEQ and IDX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ISEQ 20 Price and IDX 30 Jakarta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDX 30 Jakarta and ISEQ 20 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 ISEQ 20 Price are associated (or correlated) with IDX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDX 30 Jakarta has no effect on the direction of ISEQ 20 i.e., ISEQ 20 and IDX 30 go up and down completely randomly.
Pair Corralation between ISEQ 20 and IDX 30
Assuming the 90 days trading horizon ISEQ 20 Price is expected to generate 0.54 times more return on investment than IDX 30. However, ISEQ 20 Price is 1.86 times less risky than IDX 30. It trades about 0.04 of its potential returns per unit of risk. IDX 30 Jakarta is currently generating about -0.27 per unit of risk. If you would invest 166,522 in ISEQ 20 Price on February 5, 2024 and sell it today you would earn a total of 1,022 from holding ISEQ 20 Price or generate 0.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 75.0% |
Values | Daily Returns |
ISEQ 20 Price vs. IDX 30 Jakarta
Performance |
Timeline |
ISEQ 20 and IDX 30 Volatility Contrast
Predicted Return Density |
Returns |
ISEQ 20 Price
Pair trading matchups for ISEQ 20
IDX 30 Jakarta
Pair trading matchups for IDX 30
Pair Trading with ISEQ 20 and IDX 30
The main advantage of trading using opposite ISEQ 20 and IDX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISEQ 20 position performs unexpectedly, IDX 30 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 IDX 30 will offset losses from the drop in IDX 30's long position.ISEQ 20 vs. Ryanair Holdings plc | ISEQ 20 vs. Donegal Investment Group | ISEQ 20 vs. Bank of Ireland | ISEQ 20 vs. Dalata Hotel Group |
IDX 30 vs. Lion Metal Works | IDX 30 vs. Optima Prima Metal | IDX 30 vs. Capital Financial Indonesia | IDX 30 vs. PT Bank Bisnis |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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