Correlation Between Panin Sekuritas and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Rakyat 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 Rakyat 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 Rakyat Indonesia, you can compare the effects of market volatilities on Panin Sekuritas and Bank Rakyat 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 Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Rakyat.
Diversification Opportunities for Panin Sekuritas and Bank Rakyat
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panin and Bank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Rakyat Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat 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 Rakyat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Rakyat Indonesia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Rakyat go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Rakyat
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.55 times more return on investment than Bank Rakyat. However, Panin Sekuritas Tbk is 1.82 times less risky than Bank Rakyat. It trades about 0.02 of its potential returns per unit of risk. Bank Rakyat Indonesia is currently generating about 0.01 per unit of risk. If you would invest 155,429 in Panin Sekuritas Tbk on September 13, 2024 and sell it today you would earn a total of 7,071 from holding Panin Sekuritas Tbk or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Rakyat Indonesia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Rakyat Indonesia |
Panin Sekuritas and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Rakyat
The main advantage of trading using opposite Panin Sekuritas and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Rakyat 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 Rakyat will offset losses from the drop in Bank Rakyat'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 Rakyat vs. Bank Central Asia | Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Bank Negara Indonesia | Bank Rakyat vs. Telkom Indonesia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |