Correlation Between Panin Sekuritas and Bank Capital
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Capital 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 Panin Sekuritas and Bank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panin Sekuritas Tbk and Bank Capital Indonesia, you can compare the effects of market volatilities on Panin Sekuritas and Bank Capital 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 Panin Sekuritas with a short position of Bank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Capital.
Diversification Opportunities for Panin Sekuritas and Bank Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Panin and Bank is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Capital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Capital Indonesia and Panin Sekuritas 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 Panin Sekuritas Tbk are associated (or correlated) with Bank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Capital Indonesia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Capital go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Capital
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.91 times more return on investment than Bank Capital. However, Panin Sekuritas Tbk is 1.1 times less risky than Bank Capital. It trades about 0.0 of its potential returns per unit of risk. Bank Capital Indonesia is currently generating about -0.06 per unit of risk. If you would invest 162,500 in Panin Sekuritas Tbk on August 29, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Capital Indonesia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Capital Indonesia |
Panin Sekuritas and Bank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Capital
The main advantage of trading using opposite Panin Sekuritas and Bank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Capital 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 Bank Capital will offset losses from the drop in Bank Capital's long position.| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Panin Financial Tbk | Panin Sekuritas vs. Bank Pan Indonesia | Panin Sekuritas vs. Trimegah Securities Tbk |
| Bank Capital vs. Bank Mnc Internasional | Bank Capital vs. Bank Bumi Arta | Bank Capital vs. Bank Victoria International | Bank Capital vs. Bank Qnb 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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