Correlation Between Panin Sekuritas and Bank Pan
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Bank Pan 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 Pan 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 Pan Indonesia, you can compare the effects of market volatilities on Panin Sekuritas and Bank Pan 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 Pan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Bank Pan.
Diversification Opportunities for Panin Sekuritas and Bank Pan
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panin and Bank is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Bank Pan Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pan 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 Bank Pan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pan Indonesia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Bank Pan go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Bank Pan
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.32 times more return on investment than Bank Pan. However, Panin Sekuritas Tbk is 3.09 times less risky than Bank Pan. It trades about 0.03 of its potential returns per unit of risk. Bank Pan Indonesia is currently generating about 0.0 per unit of risk. If you would invest 161,000 in Panin Sekuritas Tbk on November 4, 2024 and sell it today you would earn a total of 500.00 from holding Panin Sekuritas Tbk or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Bank Pan Indonesia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Bank Pan Indonesia |
Panin Sekuritas and Bank Pan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Bank Pan
The main advantage of trading using opposite Panin Sekuritas and Bank Pan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Bank Pan 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 Pan will offset losses from the drop in Bank Pan'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 |
| Bank Pan vs. Bank Danamon Indonesia | Bank Pan vs. Bank Cimb Niaga | Bank Pan vs. Panin Financial Tbk | Bank Pan vs. Bank Maybank Indonesia |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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