Correlation Between Link Net and Panin Sekuritas
Can any of the company-specific risk be diversified away by investing in both Link Net and Panin Sekuritas 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 Link Net and Panin Sekuritas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Net Tbk and Panin Sekuritas Tbk, you can compare the effects of market volatilities on Link Net and Panin Sekuritas 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 Link Net with a short position of Panin Sekuritas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Net and Panin Sekuritas.
Diversification Opportunities for Link Net and Panin Sekuritas
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Link and Panin is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Link Net Tbk and Panin Sekuritas Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panin Sekuritas Tbk and Link Net 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 Link Net Tbk are associated (or correlated) with Panin Sekuritas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panin Sekuritas Tbk has no effect on the direction of Link Net i.e., Link Net and Panin Sekuritas go up and down completely randomly.
Pair Corralation between Link Net and Panin Sekuritas
Assuming the 90 days trading horizon Link Net Tbk is expected to under-perform the Panin Sekuritas. In addition to that, Link Net is 3.18 times more volatile than Panin Sekuritas Tbk. It trades about -0.12 of its total potential returns per unit of risk. Panin Sekuritas Tbk is currently generating about 0.0 per unit of volatility. If you would invest 163,500 in Panin Sekuritas Tbk on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Panin Sekuritas Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Net Tbk vs. Panin Sekuritas Tbk
Performance |
| Timeline |
| Link Net Tbk |
| Panin Sekuritas Tbk |
Link Net and Panin Sekuritas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Net and Panin Sekuritas
The main advantage of trading using opposite Link Net and Panin Sekuritas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Net position performs unexpectedly, Panin Sekuritas 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 Sekuritas will offset losses from the drop in Panin Sekuritas' long position.| Link Net vs. Mnc Land Tbk | Link Net vs. MNC Vision Networks | Link Net vs. MD Pictures Tbk | Link Net vs. Medikaloka Hermina PT |
| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Maskapai Reasuransi Indonesia | Panin Sekuritas vs. Wahana Ottomitra Multiartha | Panin Sekuritas vs. Lenox Pasifik Investama |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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