Correlation Between Clipan Finance and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Panin Financial 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 Financial 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 Financial Tbk, you can compare the effects of market volatilities on Clipan Finance and Panin Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Panin Financial.
Diversification Opportunities for Clipan Finance and Panin Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clipan and Panin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Panin Financial Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panin Financial 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panin Financial Tbk has no effect on the direction of Clipan Finance i.e., Clipan Finance and Panin Financial go up and down completely randomly.
Pair Corralation between Clipan Finance and Panin Financial
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to generate 0.52 times more return on investment than Panin Financial. However, Clipan Finance Indonesia is 1.93 times less risky than Panin Financial. It trades about -0.02 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about -0.07 per unit of risk. If you would invest 31,400 in Clipan Finance Indonesia on November 4, 2024 and sell it today you would lose (200.00) from holding Clipan Finance Indonesia or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Panin Financial Tbk
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Panin Financial Tbk |
Clipan Finance and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Panin Financial
The main advantage of trading using opposite Clipan Finance and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Panin Financial 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 Financial will offset losses from the drop in Panin Financial'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 |
| Panin Financial vs. Bank Pan Indonesia | Panin Financial vs. Paninvest Tbk | Panin Financial vs. Kawasan Industri Jababeka | Panin Financial vs. Global Mediacom 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |