Correlation Between China Securities and IDX 30
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By analyzing existing cross correlation between China Securities 800 and IDX 30 Jakarta, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of IDX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and IDX 30.
Diversification Opportunities for China Securities and IDX 30
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and IDX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and IDX 30 go up and down completely randomly.
Pair Corralation between China Securities and IDX 30
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.71 times more return on investment than IDX 30. However, China Securities 800 is 1.41 times less risky than IDX 30. It trades about 0.06 of its potential returns per unit of risk. IDX 30 Jakarta is currently generating about -0.17 per unit of risk. If you would invest 389,356 in China Securities 800 on January 31, 2024 and sell it today you would earn a total of 3,815 from holding China Securities 800 or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 84.21% |
Values | Daily Returns |
China Securities 800 vs. IDX 30 Jakarta
Performance |
Timeline |
China Securities and IDX 30 Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
IDX 30 Jakarta
Pair trading matchups for IDX 30
Pair Trading with China Securities and IDX 30
The main advantage of trading using opposite China Securities and IDX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.China Securities vs. Guangzhou Automobile Group | China Securities vs. Shaanxi Meineng Clean | China Securities vs. Xiangyang Automobile Bearing | China Securities vs. Huaibei Mining Holdings |
IDX 30 vs. First Media Tbk | IDX 30 vs. Electronic City Indonesia | IDX 30 vs. Indosterling TechnomediaTbk | IDX 30 vs. Dyandra Media 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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