Correlation Between Hoffmen Cleanindo and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Hoffmen Cleanindo 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 Hoffmen Cleanindo and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoffmen Cleanindo and Panin Financial Tbk, you can compare the effects of market volatilities on Hoffmen Cleanindo 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 Hoffmen Cleanindo with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoffmen Cleanindo and Panin Financial.
Diversification Opportunities for Hoffmen Cleanindo and Panin Financial
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hoffmen and Panin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hoffmen Cleanindo 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 Hoffmen Cleanindo 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 Hoffmen Cleanindo 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 Hoffmen Cleanindo i.e., Hoffmen Cleanindo and Panin Financial go up and down completely randomly.
Pair Corralation between Hoffmen Cleanindo and Panin Financial
Assuming the 90 days trading horizon Hoffmen Cleanindo is expected to generate 0.85 times more return on investment than Panin Financial. However, Hoffmen Cleanindo is 1.17 times less risky than Panin Financial. It trades about 0.23 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about -0.48 per unit of risk. If you would invest 18,900 in Hoffmen Cleanindo on November 27, 2024 and sell it today you would earn a total of 1,300 from holding Hoffmen Cleanindo or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoffmen Cleanindo vs. Panin Financial Tbk
Performance |
| Timeline |
| Hoffmen Cleanindo |
| Panin Financial Tbk |
Hoffmen Cleanindo and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoffmen Cleanindo and Panin Financial
The main advantage of trading using opposite Hoffmen Cleanindo and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoffmen Cleanindo 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.| Hoffmen Cleanindo vs. Global Mediacom Tbk | Hoffmen Cleanindo vs. Weha Transportasi Indonesia | Hoffmen Cleanindo vs. Mahaka Media Tbk | Hoffmen Cleanindo vs. Inocycle Technology 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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