Correlation Between Panin Sekuritas and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Mandiri 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 Mandiri 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 Mandiri Persero, you can compare the effects of market volatilities on Panin Sekuritas and Bank Mandiri 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 Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Mandiri.
Diversification Opportunities for Panin Sekuritas and Bank Mandiri
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panin and Bank is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero 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 Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Mandiri go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Mandiri
Assuming the 90 days trading horizon Panin Sekuritas is expected to generate 4.66 times less return on investment than Bank Mandiri. But when comparing it to its historical volatility, Panin Sekuritas Tbk is 1.88 times less risky than Bank Mandiri. It trades about 0.02 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 492,173 in Bank Mandiri Persero on August 24, 2024 and sell it today you would earn a total of 125,327 from holding Bank Mandiri Persero or generate 25.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Mandiri Persero
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Mandiri Persero |
Panin Sekuritas and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Mandiri
The main advantage of trading using opposite Panin Sekuritas and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Mandiri 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 Mandiri will offset losses from the drop in Bank Mandiri'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 Mandiri vs. Paninvest Tbk | Bank Mandiri vs. Maskapai Reasuransi Indonesia | Bank Mandiri vs. Panin Sekuritas Tbk | Bank Mandiri 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |