Correlation Between Pan Brothers and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Pan Brothers and Asia Pacific 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 Pan Brothers and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Brothers Tbk and Asia Pacific Investama, you can compare the effects of market volatilities on Pan Brothers and Asia Pacific 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 Pan Brothers with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Brothers and Asia Pacific.
Diversification Opportunities for Pan Brothers and Asia Pacific
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pan and Asia is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pan Brothers Tbk and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama and Pan Brothers 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 Pan Brothers Tbk are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Pan Brothers i.e., Pan Brothers and Asia Pacific go up and down completely randomly.
Pair Corralation between Pan Brothers and Asia Pacific
Assuming the 90 days trading horizon Pan Brothers Tbk is expected to under-perform the Asia Pacific. But the stock apears to be less risky and, when comparing its historical volatility, Pan Brothers Tbk is 1.17 times less risky than Asia Pacific. The stock trades about -0.07 of its potential returns per unit of risk. The Asia Pacific Investama is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,300 in Asia Pacific Investama on August 31, 2024 and sell it today you would lose (1,700) from holding Asia Pacific Investama or give up 32.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Brothers Tbk vs. Asia Pacific Investama
Performance |
| Timeline |
| Pan Brothers Tbk |
| Asia Pacific Investama |
Pan Brothers and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Brothers and Asia Pacific
The main advantage of trading using opposite Pan Brothers and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Brothers position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Pan Brothers vs. Ricky Putra Globalindo | Pan Brothers vs. Asia Pacific Fibers | Pan Brothers vs. Asia Pacific Investama | Pan Brothers vs. Prima Alloy Steel |
| Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |