Correlation Between Panin Sekuritas and Nusantara Infrastructure
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Nusantara Infrastructure 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 Nusantara Infrastructure 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 Nusantara Infrastructure Tbk, you can compare the effects of market volatilities on Panin Sekuritas and Nusantara Infrastructure 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 Nusantara Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Nusantara Infrastructure.
Diversification Opportunities for Panin Sekuritas and Nusantara Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panin and Nusantara is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Nusantara Infrastructure Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Infrastructure 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 Nusantara Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Infrastructure has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Nusantara Infrastructure go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Nusantara Infrastructure
Assuming the 90 days trading horizon Panin Sekuritas is expected to generate 13.96 times less return on investment than Nusantara Infrastructure. But when comparing it to its historical volatility, Panin Sekuritas Tbk is 3.91 times less risky than Nusantara Infrastructure. It trades about 0.02 of its potential returns per unit of risk. Nusantara Infrastructure Tbk is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12,300 in Nusantara Infrastructure Tbk on September 2, 2024 and sell it today you would earn a total of 11,500 from holding Nusantara Infrastructure Tbk or generate 93.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Nusantara Infrastructure Tbk
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Nusantara Infrastructure |
Panin Sekuritas and Nusantara Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Nusantara Infrastructure
The main advantage of trading using opposite Panin Sekuritas and Nusantara Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Nusantara Infrastructure 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 Nusantara Infrastructure will offset losses from the drop in Nusantara Infrastructure'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 |
| Nusantara Infrastructure vs. Kawasan Industri Jababeka | Nusantara Infrastructure vs. Modernland Realty Ltd | Nusantara Infrastructure vs. Multipolar Tbk | Nusantara Infrastructure vs. Lautan Luas 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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