Correlation Between Panorama Sentrawisata and Pan Brothers
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Pan Brothers 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 Panorama Sentrawisata and Pan Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panorama Sentrawisata Tbk and Pan Brothers Tbk, you can compare the effects of market volatilities on Panorama Sentrawisata and Pan Brothers 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 Panorama Sentrawisata with a short position of Pan Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Pan Brothers.
Diversification Opportunities for Panorama Sentrawisata and Pan Brothers
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panorama and Pan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Pan Brothers Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Brothers Tbk and Panorama Sentrawisata 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 Panorama Sentrawisata Tbk are associated (or correlated) with Pan Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Brothers Tbk has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Pan Brothers go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Pan Brothers
Assuming the 90 days trading horizon Panorama Sentrawisata is expected to generate 4.32 times less return on investment than Pan Brothers. But when comparing it to its historical volatility, Panorama Sentrawisata Tbk is 4.43 times less risky than Pan Brothers. It trades about 0.18 of its potential returns per unit of risk. Pan Brothers Tbk is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,900 in Pan Brothers Tbk on August 29, 2024 and sell it today you would earn a total of 400.00 from holding Pan Brothers Tbk or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panorama Sentrawisata Tbk vs. Pan Brothers Tbk
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Pan Brothers Tbk |
Panorama Sentrawisata and Pan Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Pan Brothers
The main advantage of trading using opposite Panorama Sentrawisata and Pan Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Pan Brothers 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 Pan Brothers will offset losses from the drop in Pan Brothers' long position.| Panorama Sentrawisata vs. Pembangunan Jaya Ancol | Panorama Sentrawisata vs. Hotel Sahid Jaya | Panorama Sentrawisata vs. Pudjiadi Sons Tbk | Panorama Sentrawisata vs. Pioneerindo Gourmet International |
| Pan Brothers vs. Pembangunan Jaya Ancol | Pan Brothers vs. Panorama Sentrawisata Tbk | Pan Brothers vs. Millennium Pharmacon International | Pan Brothers vs. Tempo Inti Media |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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