Correlation Between Enseval Putra and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Enseval Putra 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 Enseval Putra and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enseval Putra Megatrading and Panin Financial Tbk, you can compare the effects of market volatilities on Enseval Putra 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 Enseval Putra with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enseval Putra and Panin Financial.
Diversification Opportunities for Enseval Putra and Panin Financial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enseval and Panin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Enseval Putra Megatrading 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 Enseval Putra 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 Enseval Putra Megatrading 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 Enseval Putra i.e., Enseval Putra and Panin Financial go up and down completely randomly.
Pair Corralation between Enseval Putra and Panin Financial
Assuming the 90 days trading horizon Enseval Putra Megatrading is expected to generate 0.29 times more return on investment than Panin Financial. However, Enseval Putra Megatrading is 3.47 times less risky than Panin Financial. It trades about -0.25 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about -0.11 per unit of risk. If you would invest 249,000 in Enseval Putra Megatrading on August 27, 2024 and sell it today you would lose (10,000) from holding Enseval Putra Megatrading or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enseval Putra Megatrading vs. Panin Financial Tbk
Performance |
| Timeline |
| Enseval Putra Megatrading |
| Panin Financial Tbk |
Enseval Putra and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enseval Putra and Panin Financial
The main advantage of trading using opposite Enseval Putra and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enseval Putra 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.| Enseval Putra vs. Astra Graphia Tbk | Enseval Putra vs. Hexindo Adiperkasa Tbk | Enseval Putra vs. Lautan Luas Tbk | Enseval Putra vs. Citra Marga Nusaphala |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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