Correlation Between Panin Sekuritas and Victoria Investama
Can any of the company-specific risk be diversified away by investing in both Panin Sekuritas and Victoria Investama 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 Victoria Investama 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 Victoria Investama Tbk, you can compare the effects of market volatilities on Panin Sekuritas and Victoria Investama 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 Victoria Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Sekuritas and Victoria Investama.
Diversification Opportunities for Panin Sekuritas and Victoria Investama
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panin and Victoria is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Panin Sekuritas Tbk and Victoria Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victoria Investama 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 Victoria Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victoria Investama Tbk has no effect on the direction of Panin Sekuritas i.e., Panin Sekuritas and Victoria Investama go up and down completely randomly.
Pair Corralation between Panin Sekuritas and Victoria Investama
Assuming the 90 days trading horizon Panin Sekuritas Tbk is expected to under-perform the Victoria Investama. But the stock apears to be less risky and, when comparing its historical volatility, Panin Sekuritas Tbk is 7.76 times less risky than Victoria Investama. The stock trades about -0.01 of its potential returns per unit of risk. The Victoria Investama Tbk is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 16,700 in Victoria Investama Tbk on August 30, 2024 and sell it today you would earn a total of 3,900 from holding Victoria Investama Tbk or generate 23.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Sekuritas Tbk vs. Victoria Investama Tbk
Performance |
| Timeline |
| Panin Sekuritas Tbk |
| Victoria Investama Tbk |
Panin Sekuritas and Victoria Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Sekuritas and Victoria Investama
The main advantage of trading using opposite Panin Sekuritas and Victoria Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Sekuritas position performs unexpectedly, Victoria Investama 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 Victoria Investama will offset losses from the drop in Victoria Investama'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 |
| Victoria Investama vs. Victoria Insurance Tbk | Victoria Investama vs. Verena Multi Finance | Victoria Investama vs. Trimegah Securities Tbk | Victoria Investama vs. Tifa Finance 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |