Correlation Between Paninvest Tbk and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Maming Enam 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 Paninvest Tbk and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Maming Enam Sembilan, you can compare the effects of market volatilities on Paninvest Tbk and Maming Enam 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 Paninvest Tbk with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Maming Enam.
Diversification Opportunities for Paninvest Tbk and Maming Enam
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Paninvest and Maming is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Paninvest Tbk 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 Paninvest Tbk are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Maming Enam go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Maming Enam
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 20.26 times less return on investment than Maming Enam. But when comparing it to its historical volatility, Paninvest Tbk is 2.64 times less risky than Maming Enam. It trades about 0.0 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 29,200 in Maming Enam Sembilan on September 13, 2024 and sell it today you would earn a total of 2,800 from holding Maming Enam Sembilan or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Paninvest Tbk vs. Maming Enam Sembilan
Performance |
| Timeline |
| Paninvest Tbk |
| Maming Enam Sembilan |
Paninvest Tbk and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Maming Enam
The main advantage of trading using opposite Paninvest Tbk and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
| Maming Enam vs. Paninvest Tbk | Maming Enam vs. Maskapai Reasuransi Indonesia | Maming Enam vs. Panin Sekuritas Tbk | Maming Enam vs. Wahana Ottomitra Multiartha |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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