Correlation Between Clipan Finance and Bank Pan
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Bank Pan 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 Bank Pan 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 Bank Pan Indonesia, you can compare the effects of market volatilities on Clipan Finance and Bank Pan 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 Bank Pan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Bank Pan.
Diversification Opportunities for Clipan Finance and Bank Pan
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clipan and Bank is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Bank Pan Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pan Indonesia 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 Bank Pan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pan Indonesia has no effect on the direction of Clipan Finance i.e., Clipan Finance and Bank Pan go up and down completely randomly.
Pair Corralation between Clipan Finance and Bank Pan
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Bank Pan. But the stock apears to be less risky and, when comparing its historical volatility, Clipan Finance Indonesia is 1.67 times less risky than Bank Pan. The stock trades about -0.02 of its potential returns per unit of risk. The Bank Pan Indonesia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 183,500 in Bank Pan Indonesia on November 4, 2024 and sell it today you would lose (500.00) from holding Bank Pan Indonesia or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Bank Pan Indonesia
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Bank Pan Indonesia |
Clipan Finance and Bank Pan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Bank Pan
The main advantage of trading using opposite Clipan Finance and Bank Pan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Bank Pan 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 Bank Pan will offset losses from the drop in Bank Pan's 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 |
| Bank Pan vs. Bank Danamon Indonesia | Bank Pan vs. Bank Cimb Niaga | Bank Pan vs. Panin Financial Tbk | Bank Pan vs. Bank Maybank 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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