Correlation Between Panin Sekuritas and Bank Cimb
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Cimb 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 Cimb 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 Cimb Niaga, you can compare the effects of market volatilities on Panin Sekuritas and Bank Cimb 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 Cimb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Cimb.
Diversification Opportunities for Panin Sekuritas and Bank Cimb
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panin and Bank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Cimb Niaga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Cimb Niaga 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 Cimb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Cimb Niaga has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Cimb go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Cimb
Assuming the 90 days trading horizon Panin Sekuritas is expected to generate 8.05 times less return on investment than Bank Cimb. But when comparing it to its historical volatility, Panin Sekuritas Tbk is 1.84 times less risky than Bank Cimb. It trades about 0.02 of its potential returns per unit of risk. Bank Cimb Niaga is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 96,236 in Bank Cimb Niaga on November 19, 2024 and sell it today you would earn a total of 74,264 from holding Bank Cimb Niaga or generate 77.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Cimb Niaga
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Cimb Niaga |
Panin Sekuritas and Bank Cimb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Cimb
The main advantage of trading using opposite Panin Sekuritas and Bank Cimb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Cimb 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 Cimb will offset losses from the drop in Bank Cimb'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 Cimb vs. Bank Danamon Indonesia | Bank Cimb vs. Bank Maybank Indonesia | Bank Cimb vs. Bank Pan Indonesia | Bank Cimb vs. Indosat 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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