Correlation Between Panca Global and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Panca Global and Bank Qnb 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 Panca Global and Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Global Securities and Bank Qnb Indonesia, you can compare the effects of market volatilities on Panca Global and Bank Qnb 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 Panca Global with a short position of Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Global and Bank Qnb.
Diversification Opportunities for Panca Global and Bank Qnb
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Panca and Bank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Panca Global Securities and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb Indonesia and Panca Global 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 Panca Global Securities are associated (or correlated) with Bank Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of Panca Global i.e., Panca Global and Bank Qnb go up and down completely randomly.
Pair Corralation between Panca Global and Bank Qnb
Assuming the 90 days trading horizon Panca Global Securities is expected to generate 1.34 times more return on investment than Bank Qnb. However, Panca Global is 1.34 times more volatile than Bank Qnb Indonesia. It trades about 0.15 of its potential returns per unit of risk. Bank Qnb Indonesia is currently generating about -0.2 per unit of risk. If you would invest 10,500 in Panca Global Securities on November 4, 2024 and sell it today you would earn a total of 900.00 from holding Panca Global Securities or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Global Securities vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Panca Global Securities |
| Bank Qnb Indonesia |
Panca Global and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Global and Bank Qnb
The main advantage of trading using opposite Panca Global and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Global position performs unexpectedly, Bank Qnb 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 Qnb will offset losses from the drop in Bank Qnb's long position.| Panca Global vs. Asuransi Dayin Mitra | Panca Global vs. Asuransi Harta Aman | Panca Global vs. Asuransi Bintang Tbk | Panca Global vs. Asuransi Ramayana Tbk |
| Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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