Correlation Between Panin Sekuritas and Clipan Finance
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Clipan Finance 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 Clipan Finance 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 Clipan Finance Indonesia, you can compare the effects of market volatilities on Panin Sekuritas and Clipan Finance 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 Clipan Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Clipan Finance.
Diversification Opportunities for Panin Sekuritas and Clipan Finance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panin and Clipan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Clipan Finance Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipan Finance 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 Clipan Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipan Finance Indonesia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Clipan Finance go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Clipan Finance
Assuming the 90 days trading horizon Panin Sekuritas is expected to generate 3.98 times less return on investment than Clipan Finance. But when comparing it to its historical volatility, Panin Sekuritas Tbk is 3.26 times less risky than Clipan Finance. It trades about 0.02 of its potential returns per unit of risk. Clipan Finance Indonesia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 26,921 in Clipan Finance Indonesia on October 25, 2024 and sell it today you would earn a total of 4,679 from holding Clipan Finance Indonesia or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Clipan Finance Indonesia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Clipan Finance Indonesia |
Panin Sekuritas and Clipan Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Clipan Finance
The main advantage of trading using opposite Panin Sekuritas and Clipan Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Clipan Finance 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 Clipan Finance will offset losses from the drop in Clipan Finance'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 |
| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial 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 Valuation module to check real value of public entities based on technical and fundamental data.
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