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
no article
305
Files
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 6, 2025, https://insyma.org/proceedings/items/show/305.