Correlation Between Panin Sekuritas and Bank Nationalnobu
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Nationalnobu 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 Nationalnobu 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 Nationalnobu Tbk, you can compare the effects of market volatilities on Panin Sekuritas and Bank Nationalnobu 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 Nationalnobu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Nationalnobu.
Diversification Opportunities for Panin Sekuritas and Bank Nationalnobu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panin and Bank is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Nationalnobu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Nationalnobu 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 Nationalnobu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Nationalnobu Tbk has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Nationalnobu go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Nationalnobu
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.61 times more return on investment than Bank Nationalnobu. However, Panin Sekuritas Tbk is 1.63 times less risky than Bank Nationalnobu. It trades about -0.07 of its potential returns per unit of risk. Bank Nationalnobu Tbk is currently generating about -0.05 per unit of risk. If you would invest 165,000 in Panin Sekuritas Tbk on August 26, 2024 and sell it today you would lose (3,000) from holding Panin Sekuritas Tbk or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Nationalnobu Tbk
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Nationalnobu Tbk |
Panin Sekuritas and Bank Nationalnobu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Nationalnobu
The main advantage of trading using opposite Panin Sekuritas and Bank Nationalnobu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Nationalnobu 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 Nationalnobu will offset losses from the drop in Bank Nationalnobu's long position.| Panin Sekuritas vs. Paninvest Tbk | Panin Sekuritas vs. Wahana Ottomitra Multiartha | Panin Sekuritas vs. Lenox Pasifik Investama |
| Bank Nationalnobu vs. Paninvest Tbk | Bank Nationalnobu vs. Panin Sekuritas Tbk | Bank Nationalnobu vs. Wahana Ottomitra Multiartha | Bank Nationalnobu vs. Lenox Pasifik Investama |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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