Correlation Between Bank Pan and Duta Pertiwi
Can any of the company-specific risk be diversified away by investing in both Bank Pan and Duta Pertiwi 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 Bank Pan and Duta Pertiwi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Pan Indonesia and Duta Pertiwi Nusantara, you can compare the effects of market volatilities on Bank Pan and Duta Pertiwi 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 Bank Pan with a short position of Duta Pertiwi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pan and Duta Pertiwi.
Diversification Opportunities for Bank Pan and Duta Pertiwi
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Duta is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pan Indonesia and Duta Pertiwi Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duta Pertiwi Nusantara and Bank Pan 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 Bank Pan Indonesia are associated (or correlated) with Duta Pertiwi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duta Pertiwi Nusantara has no effect on the direction of Bank Pan i.e., Bank Pan and Duta Pertiwi go up and down completely randomly.
Pair Corralation between Bank Pan and Duta Pertiwi
Assuming the 90 days trading horizon Bank Pan Indonesia is expected to under-perform the Duta Pertiwi. In addition to that, Bank Pan is 2.37 times more volatile than Duta Pertiwi Nusantara. It trades about -0.18 of its total potential returns per unit of risk. Duta Pertiwi Nusantara is currently generating about -0.03 per unit of volatility. If you would invest 34,200 in Duta Pertiwi Nusantara on August 28, 2024 and sell it today you would lose (200.00) from holding Duta Pertiwi Nusantara or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Pan Indonesia vs. Duta Pertiwi Nusantara
Performance |
| Timeline |
| Bank Pan Indonesia |
| Duta Pertiwi Nusantara |
Bank Pan and Duta Pertiwi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pan and Duta Pertiwi
The main advantage of trading using opposite Bank Pan and Duta Pertiwi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pan position performs unexpectedly, Duta Pertiwi 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 Duta Pertiwi will offset losses from the drop in Duta Pertiwi's long position.| Bank Pan vs. Bank Danamon Indonesia | Bank Pan vs. Bank Cimb Niaga | Bank Pan vs. Panin Financial Tbk | Bank Pan vs. Bank Maybank Indonesia |
| Duta Pertiwi vs. Intanwijaya Internasional Tbk | Duta Pertiwi vs. Betonjaya Manunggal Tbk | Duta Pertiwi vs. Asiaplast Industries Tbk | Duta Pertiwi vs. Argha Karya Prima |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |