Correlation Between Panin Sekuritas and Bank Central
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Central 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 Central 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 Central Asia, you can compare the effects of market volatilities on Panin Sekuritas and Bank Central 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 Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Central.
Diversification Opportunities for Panin Sekuritas and Bank Central
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panin and Bank is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia 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 Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Central go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Central
Assuming the 90 days trading horizon Panin Sekuritas is expected to generate 3.04 times less return on investment than Bank Central. But when comparing it to its historical volatility, Panin Sekuritas Tbk is 1.44 times less risky than Bank Central. It trades about 0.02 of its potential returns per unit of risk. Bank Central Asia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 806,681 in Bank Central Asia on August 29, 2024 and sell it today you would earn a total of 193,319 from holding Bank Central Asia or generate 23.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Central Asia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Central Asia |
Panin Sekuritas and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Central
The main advantage of trading using opposite Panin Sekuritas and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Central 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 Central will offset losses from the drop in Bank Central'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 Central vs. Bank Rakyat Indonesia | Bank Central vs. Bank Mandiri Persero | Bank Central vs. Bank Negara Indonesia | Bank Central vs. Astra International 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |