Correlation Between Paninvest Tbk and Asuransi Multi
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Asuransi Multi 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 Asuransi Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Asuransi Multi Artha, you can compare the effects of market volatilities on Paninvest Tbk and Asuransi Multi 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 Asuransi Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Asuransi Multi.
Diversification Opportunities for Paninvest Tbk and Asuransi Multi
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Paninvest and Asuransi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Asuransi Multi Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Multi Artha 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 Asuransi Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Multi Artha has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Asuransi Multi go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Asuransi Multi
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 1.89 times less return on investment than Asuransi Multi. In addition to that, Paninvest Tbk is 1.27 times more volatile than Asuransi Multi Artha. It trades about 0.02 of its total potential returns per unit of risk. Asuransi Multi Artha is currently generating about 0.05 per unit of volatility. If you would invest 27,535 in Asuransi Multi Artha on August 29, 2024 and sell it today you would earn a total of 6,065 from holding Asuransi Multi Artha or generate 22.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Asuransi Multi Artha
Performance |
| Timeline |
| Paninvest Tbk |
| Asuransi Multi Artha |
Paninvest Tbk and Asuransi Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Asuransi Multi
The main advantage of trading using opposite Paninvest Tbk and Asuransi Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Asuransi Multi 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 Asuransi Multi will offset losses from the drop in Asuransi Multi'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 |
| Asuransi Multi vs. Asuransi Bina Dana | Asuransi Multi vs. Asuransi Dayin Mitra | Asuransi Multi vs. Clipan Finance Indonesia | Asuransi Multi vs. Asuransi Harta Aman |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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