Correlation Between Bank Pembangunan and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Bank Pembangunan and Paninvest Tbk 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 Pembangunan and Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Pembangunan Timur and Paninvest Tbk, you can compare the effects of market volatilities on Bank Pembangunan and Paninvest Tbk 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 Pembangunan with a short position of Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pembangunan and Paninvest Tbk.
Diversification Opportunities for Bank Pembangunan and Paninvest Tbk
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Paninvest is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pembangunan Timur and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk and Bank Pembangunan 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 Pembangunan Timur are associated (or correlated) with Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Bank Pembangunan i.e., Bank Pembangunan and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Bank Pembangunan and Paninvest Tbk
Assuming the 90 days trading horizon Bank Pembangunan Timur is expected to under-perform the Paninvest Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Bank Pembangunan Timur is 2.04 times less risky than Paninvest Tbk. The stock trades about -0.01 of its potential returns per unit of risk. The Paninvest Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 98,500 in Paninvest Tbk on September 3, 2024 and sell it today you would earn a total of 8,000 from holding Paninvest Tbk or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Pembangunan Timur vs. Paninvest Tbk
Performance |
| Timeline |
| Bank Pembangunan Timur |
| Paninvest Tbk |
Bank Pembangunan and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pembangunan and Paninvest Tbk
The main advantage of trading using opposite Bank Pembangunan and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pembangunan position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk's long position.| Bank Pembangunan vs. Paninvest Tbk | Bank Pembangunan vs. Mitra Pinasthika Mustika | Bank Pembangunan vs. Jakarta Int Hotels | Bank Pembangunan vs. Asuransi Harta Aman |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |