Correlation Between Humpuss Intermoda and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda 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 Humpuss Intermoda and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humpuss Intermoda Transportasi and Panin Financial Tbk, you can compare the effects of market volatilities on Humpuss Intermoda 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 Humpuss Intermoda with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and Panin Financial.
Diversification Opportunities for Humpuss Intermoda and Panin Financial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humpuss and Panin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi 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 Humpuss Intermoda i.e., Humpuss Intermoda and Panin Financial go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and Panin Financial
Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to generate 1.26 times more return on investment than Panin Financial. However, Humpuss Intermoda is 1.26 times more volatile than Panin Financial Tbk. It trades about 0.18 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about 0.02 per unit of risk. If you would invest 28,600 in Humpuss Intermoda Transportasi on August 30, 2024 and sell it today you would earn a total of 13,000 from holding Humpuss Intermoda Transportasi or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. Panin Financial Tbk
Performance |
| Timeline |
| Humpuss Intermoda |
| Panin Financial Tbk |
Humpuss Intermoda and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and Panin Financial
The main advantage of trading using opposite Humpuss Intermoda and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda 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.| Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Fortune Mate Indonesia |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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