Correlation Between Lenox Pasifik and Panin Sekuritas
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik 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 Lenox Pasifik and Panin Sekuritas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lenox Pasifik Investama and Panin Sekuritas Tbk, you can compare the effects of market volatilities on Lenox Pasifik 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 Lenox Pasifik with a short position of Panin Sekuritas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Panin Sekuritas.
Diversification Opportunities for Lenox Pasifik and Panin Sekuritas
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lenox and Panin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama 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 Lenox Pasifik 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 Lenox Pasifik Investama 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 Lenox Pasifik i.e., Lenox Pasifik and Panin Sekuritas go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Panin Sekuritas
Assuming the 90 days trading horizon Lenox Pasifik is expected to generate 1.46 times less return on investment than Panin Sekuritas. In addition to that, Lenox Pasifik is 3.74 times more volatile than Panin Sekuritas Tbk. It trades about 0.0 of its total potential returns per unit of risk. Panin Sekuritas Tbk is currently generating about 0.02 per unit of volatility. If you would invest 153,843 in Panin Sekuritas Tbk on August 28, 2024 and sell it today you would earn a total of 9,657 from holding Panin Sekuritas Tbk or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Panin Sekuritas Tbk
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Panin Sekuritas Tbk |
Lenox Pasifik and Panin Sekuritas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Panin Sekuritas
The main advantage of trading using opposite Lenox Pasifik and Panin Sekuritas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik 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.| Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest Tbk |
| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Panin Financial Tbk | Panin Sekuritas vs. Bank Pan Indonesia | Panin Sekuritas vs. Trimegah Securities 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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