Correlation Between Bank Nationalnobu and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Bank Nationalnobu and Paninvest Tbk 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 Bank Nationalnobu and Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Nationalnobu Tbk and Paninvest Tbk, you can compare the effects of market volatilities on Bank Nationalnobu and Paninvest Tbk 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 Bank Nationalnobu with a short position of Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Nationalnobu and Paninvest Tbk.
Diversification Opportunities for Bank Nationalnobu and Paninvest Tbk
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Paninvest is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank Nationalnobu Tbk and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk and Bank Nationalnobu 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 Bank Nationalnobu Tbk are associated (or correlated) with Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Bank Nationalnobu i.e., Bank Nationalnobu and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Bank Nationalnobu and Paninvest Tbk
Assuming the 90 days trading horizon Bank Nationalnobu Tbk is expected to generate 0.54 times more return on investment than Paninvest Tbk. However, Bank Nationalnobu Tbk is 1.85 times less risky than Paninvest Tbk. It trades about 0.07 of its potential returns per unit of risk. Paninvest Tbk is currently generating about -0.05 per unit of risk. If you would invest 64,500 in Bank Nationalnobu Tbk on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Bank Nationalnobu Tbk or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Nationalnobu Tbk vs. Paninvest Tbk
Performance |
| Timeline |
| Bank Nationalnobu Tbk |
| Paninvest Tbk |
Bank Nationalnobu and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Nationalnobu and Paninvest Tbk
The main advantage of trading using opposite Bank Nationalnobu and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Nationalnobu position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk's long position.| Bank Nationalnobu vs. Humpuss Intermoda Transportasi | Bank Nationalnobu vs. Hero Supermarket Tbk | Bank Nationalnobu vs. Anabatic Technologies Tbk | Bank Nationalnobu vs. Kedawung Setia Industrial |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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