Correlation Between Panin Sekuritas and Bank Pembangunan
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Pembangunan 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 Pembangunan 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 Pembangunan Timur, you can compare the effects of market volatilities on Panin Sekuritas and Bank Pembangunan 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 Pembangunan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Pembangunan.
Diversification Opportunities for Panin Sekuritas and Bank Pembangunan
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panin and Bank is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Pembangunan Timur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pembangunan Timur 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 Pembangunan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pembangunan Timur has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Pembangunan go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Pembangunan
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 1.65 times more return on investment than Bank Pembangunan. However, Panin Sekuritas is 1.65 times more volatile than Bank Pembangunan Timur. It trades about -0.03 of its potential returns per unit of risk. Bank Pembangunan Timur is currently generating about -0.24 per unit of risk. If you would invest 163,500 in Panin Sekuritas Tbk on August 25, 2024 and sell it today you would lose (1,500) from holding Panin Sekuritas Tbk or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Pembangunan Timur
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Pembangunan Timur |
Panin Sekuritas and Bank Pembangunan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Pembangunan
The main advantage of trading using opposite Panin Sekuritas and Bank Pembangunan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Pembangunan 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 Pembangunan will offset losses from the drop in Bank Pembangunan's long position.| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Maskapai Reasuransi Indonesia | Panin Sekuritas vs. Wahana Ottomitra Multiartha | Panin Sekuritas vs. Lenox Pasifik Investama |
| Bank Pembangunan vs. Paninvest Tbk | Bank Pembangunan vs. Maskapai Reasuransi Indonesia | Bank Pembangunan vs. Panin Sekuritas Tbk | Bank Pembangunan vs. Wahana Ottomitra Multiartha |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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