Correlation Between Clipan Finance and Panin Sekuritas
Can any of the company-specific risk be diversified away by investing in both Clipan Finance 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 Clipan Finance and Panin Sekuritas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Panin Sekuritas Tbk, you can compare the effects of market volatilities on Clipan Finance 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 Clipan Finance with a short position of Panin Sekuritas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Panin Sekuritas.
Diversification Opportunities for Clipan Finance and Panin Sekuritas
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clipan and Panin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia 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 Clipan Finance 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 Clipan Finance Indonesia 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 Clipan Finance i.e., Clipan Finance and Panin Sekuritas go up and down completely randomly.
Pair Corralation between Clipan Finance and Panin Sekuritas
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Panin Sekuritas. In addition to that, Clipan Finance is 1.85 times more volatile than Panin Sekuritas Tbk. It trades about -0.02 of its total potential returns per unit of risk. Panin Sekuritas Tbk is currently generating about 0.03 per unit of volatility. If you would invest 161,000 in Panin Sekuritas Tbk on November 4, 2024 and sell it today you would earn a total of 500.00 from holding Panin Sekuritas Tbk or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Panin Sekuritas Tbk
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Panin Sekuritas Tbk |
Clipan Finance and Panin Sekuritas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Panin Sekuritas
The main advantage of trading using opposite Clipan Finance and Panin Sekuritas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance 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.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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