Correlation Between Panin Sekuritas and Bank Bumi
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Bumi 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 Bumi 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 Bumi Arta, you can compare the effects of market volatilities on Panin Sekuritas and Bank Bumi 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 Bumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Bumi.
Diversification Opportunities for Panin Sekuritas and Bank Bumi
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panin and Bank is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Bumi Arta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Bumi Arta 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 Bumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Bumi Arta has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Bumi go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Bumi
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.31 times more return on investment than Bank Bumi. However, Panin Sekuritas Tbk is 3.22 times less risky than Bank Bumi. It trades about 0.02 of its potential returns per unit of risk. Bank Bumi Arta is currently generating about -0.02 per unit of risk. If you would invest 157,020 in Panin Sekuritas Tbk on September 12, 2024 and sell it today you would earn a total of 5,980 from holding Panin Sekuritas Tbk or generate 3.81% return on investment 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 Bumi Arta
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Bumi Arta |
Panin Sekuritas and Bank Bumi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Bumi
The main advantage of trading using opposite Panin Sekuritas and Bank Bumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Bumi 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 Bumi will offset losses from the drop in Bank Bumi'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 Bumi vs. Paninvest Tbk | Bank Bumi vs. Maskapai Reasuransi Indonesia | Bank Bumi vs. Panin Sekuritas Tbk | Bank Bumi 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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