Correlation Between Panin Sekuritas and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on Panin Sekuritas and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Lenox Pasifik.
Diversification Opportunities for Panin Sekuritas and Lenox Pasifik
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panin and Lenox is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Lenox Pasifik
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.27 times more return on investment than Lenox Pasifik. However, Panin Sekuritas Tbk is 3.73 times less risky than Lenox Pasifik. It trades about 0.02 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about 0.0 per unit of risk. If you would invest 155,033 in Panin Sekuritas Tbk on August 24, 2024 and sell it today you would earn a total of 6,967 from holding Panin Sekuritas Tbk or generate 4.49% 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. Lenox Pasifik Investama
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Lenox Pasifik Investama |
Panin Sekuritas and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Lenox Pasifik
The main advantage of trading using opposite Panin Sekuritas and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik'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 |
| Lenox Pasifik vs. Paninvest Tbk | Lenox Pasifik vs. Maskapai Reasuransi Indonesia | Lenox Pasifik vs. Panin Sekuritas Tbk | Lenox Pasifik 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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