Correlation Between Panin Sekuritas and Trust Finance
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Trust Finance 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 Trust Finance 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 Trust Finance Indonesia, you can compare the effects of market volatilities on Panin Sekuritas and Trust Finance 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 Trust Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Trust Finance.
Diversification Opportunities for Panin Sekuritas and Trust Finance
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Panin and Trust is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Trust Finance Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Finance 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 Trust Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Finance Indonesia has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Trust Finance go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Trust Finance
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to generate 0.48 times more return on investment than Trust Finance. However, Panin Sekuritas Tbk is 2.1 times less risky than Trust Finance. It trades about 0.04 of its potential returns per unit of risk. Trust Finance Indonesia is currently generating about 0.0 per unit of risk. If you would invest 160,500 in Panin Sekuritas Tbk on August 30, 2024 and sell it today you would earn a total of 2,000 from holding Panin Sekuritas Tbk or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Trust Finance Indonesia
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Trust Finance Indonesia |
Panin Sekuritas and Trust Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Trust Finance
The main advantage of trading using opposite Panin Sekuritas and Trust Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Trust Finance 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 Trust Finance will offset losses from the drop in Trust Finance'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 |
| Trust Finance vs. Wahana Ottomitra Multiartha | Trust Finance vs. Yulie Sekurindo Tbk | Trust Finance vs. Trimegah Securities Tbk | Trust Finance vs. Mandala Multifinance 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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