Correlation Between Panin Sekuritas and Bank Mega
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Mega 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 Mega 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 Mega Tbk, you can compare the effects of market volatilities on Panin Sekuritas and Bank Mega 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 Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Mega.
Diversification Opportunities for Panin Sekuritas and Bank Mega
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panin and Bank is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Mega Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mega Tbk 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 Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mega Tbk has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Mega go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Mega
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 1.18 times more return on investment than Bank Mega. However, Panin Sekuritas is 1.18 times more volatile than Bank Mega Tbk. It trades about 0.0 of its potential returns per unit of risk. Bank Mega Tbk is currently generating about -0.16 per unit of risk. If you would invest 163,500 in Panin Sekuritas Tbk on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Panin Sekuritas Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Mega Tbk
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Mega Tbk |
Panin Sekuritas and Bank Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Mega
The main advantage of trading using opposite Panin Sekuritas and Bank Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Mega 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 Mega will offset losses from the drop in Bank Mega'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 Mega vs. Paninvest Tbk | Bank Mega vs. Maskapai Reasuransi Indonesia | Bank Mega vs. Panin Sekuritas Tbk | Bank Mega 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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