Correlation of Sectoral Stock Indexes on the Indonesian Stock Exchange for Portfolio Diversification Strategies

Dublin Core

Title

Correlation of Sectoral Stock Indexes on the Indonesian Stock Exchange for Portfolio Diversification Strategies

Creator

Rahmat Budi Santoso, M. Rifki Bakhtiar, Bunga Rosa Afilia, Abdul Basid

Proceedings Item Type Metadata

Title

Correlation of Sectoral Stock Indexes on the Indonesian Stock Exchange for Portfolio Diversification Strategies

meta_title

Correlation of Sectoral Stock Indexes on the Indonesian Stock Exchange for Portfolio Diversification Strategies

Abstract/Description

This research aims to examine opportunities for stock portfolio diversification on the IDX Industrial Classification index on the Indonesian Stock Exchange. This research data uses daily returns from 11 sectoral stock price index. The research period used is from January 25, 2021, to March 28, 2024. The analysis method uses correlation analysis to determine the level of index return correlation between sectors. The research results show that all stock sectors have varying levels of correlation, but the level of correlation is low to moderate. The technology stock sector has the lowest correlation with other stock sectors. Investors have a huge opportunity to diversify their shares into several stock sectors to reduce the risk of investing.

publication_date

2024/06/15

pdf_url

https://insyma.org/proceedings/files/original/7af07db916ec65503d7782475c557190.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/305

keywords

Portfolio Diversification, Sectoral Stock Price Index, IDX Industrial Classification, Indonesia stock exchange

firstpage

780

lastpage

784

issn

3047-857X

conference

Proceedings of the International Symposium on Management (INSYMA)

Volume

21

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Rahmat Budi Santoso

Author #2

M. Rifki Bakhtiar

Author #3

Bunga Rosa Afilia

Author #4

Abdul Basid

no article

305

Files

139_Rahmat Budi Santoso_780-784.pdf

Citation

Rahmat Budi Santoso, M. Rifki Bakhtiar, Bunga Rosa Afilia, Abdul Basid, “Correlation of Sectoral Stock Indexes on the Indonesian Stock Exchange for Portfolio Diversification Strategies,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/305.

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