Correlation Between Bank Pan and Bank Panin
Can any of the company-specific risk be diversified away by investing in both Bank Pan and Bank Panin 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 Bank Panin 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 Bank Panin Syariah, you can compare the effects of market volatilities on Bank Pan and Bank Panin 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 Bank Panin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Pan and Bank Panin.
Diversification Opportunities for Bank Pan and Bank Panin
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Bank is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank Pan Indonesia and Bank Panin Syariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Panin Syariah 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 Bank Panin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Panin Syariah has no effect on the direction of Bank Pan i.e., Bank Pan and Bank Panin go up and down completely randomly.
Pair Corralation between Bank Pan and Bank Panin
Assuming the 90 days trading horizon Bank Pan Indonesia is expected to generate 1.55 times more return on investment than Bank Panin. However, Bank Pan is 1.55 times more volatile than Bank Panin Syariah. It trades about 0.06 of its potential returns per unit of risk. Bank Panin Syariah is currently generating about -0.01 per unit of risk. If you would invest 114,000 in Bank Pan Indonesia on September 1, 2024 and sell it today you would earn a total of 64,000 from holding Bank Pan Indonesia or generate 56.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Pan Indonesia vs. Bank Panin Syariah
Performance |
| Timeline |
| Bank Pan Indonesia |
| Bank Panin Syariah |
Bank Pan and Bank Panin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Pan and Bank Panin
The main advantage of trading using opposite Bank Pan and Bank Panin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Pan position performs unexpectedly, Bank Panin 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 Panin will offset losses from the drop in Bank Panin'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 |
| Bank Panin vs. Bank Windu Kentjana | Bank Panin vs. Bank Mnc Internasional | Bank Panin vs. Bank Ganesha Tbk | Bank Panin vs. Bank Pan 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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