Correlation Between Bank Bukopin and Panin Sekuritas
Can any of the company-specific risk be diversified away by investing in both Bank Bukopin and Panin Sekuritas at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Bukopin and Panin Sekuritas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Bukopin Tbk and Panin Sekuritas Tbk, you can compare the effects of market volatilities on Bank Bukopin and Panin Sekuritas 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 Bank Bukopin with a short position of Panin Sekuritas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Bukopin and Panin Sekuritas.
Diversification Opportunities for Bank Bukopin and Panin Sekuritas
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Panin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Bukopin Tbk and Panin Sekuritas Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panin Sekuritas Tbk and Bank Bukopin 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 Bank Bukopin Tbk are associated (or correlated) with Panin Sekuritas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panin Sekuritas Tbk has no effect on the direction of Bank Bukopin i.e., Bank Bukopin and Panin Sekuritas go up and down completely randomly.
Pair Corralation between Bank Bukopin and Panin Sekuritas
Assuming the 90 days trading horizon Bank Bukopin Tbk is expected to under-perform the Panin Sekuritas. In addition to that, Bank Bukopin is 1.88 times more volatile than Panin Sekuritas Tbk. It trades about -0.15 of its total potential returns per unit of risk. Panin Sekuritas Tbk is currently generating about 0.0 per unit of volatility. If you would invest 162,500 in Panin Sekuritas Tbk on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Panin Sekuritas Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Bukopin Tbk vs. Panin Sekuritas Tbk
Performance |
| Timeline |
| Bank Bukopin Tbk |
| Panin Sekuritas Tbk |
Bank Bukopin and Panin Sekuritas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Bukopin and Panin Sekuritas
The main advantage of trading using opposite Bank Bukopin and Panin Sekuritas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Bukopin position performs unexpectedly, Panin Sekuritas 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 Panin Sekuritas will offset losses from the drop in Panin Sekuritas' long position.| Bank Bukopin vs. Bank Danamon Indonesia | Bank Bukopin vs. Bank Cimb Niaga | Bank Bukopin vs. Bank Tabungan Negara | Bank Bukopin vs. Bank Jabar |
| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Panin Financial Tbk | Panin Sekuritas vs. Bank Pan Indonesia | Panin Sekuritas vs. Trimegah Securities Tbk |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |