Correlation Between Paninvest Tbk and Bank Pembangunan
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Bank Pembangunan 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 Bank Pembangunan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Bank Pembangunan Timur, you can compare the effects of market volatilities on Paninvest Tbk and Bank Pembangunan 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 Bank Pembangunan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Bank Pembangunan.
Diversification Opportunities for Paninvest Tbk and Bank Pembangunan
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Paninvest and Bank is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Bank Pembangunan Timur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pembangunan Timur 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 Bank Pembangunan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pembangunan Timur has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Bank Pembangunan go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Bank Pembangunan
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 1.99 times more return on investment than Bank Pembangunan. However, Paninvest Tbk is 1.99 times more volatile than Bank Pembangunan Timur. It trades about 0.07 of its potential returns per unit of risk. Bank Pembangunan Timur is currently generating about 0.03 per unit of risk. If you would invest 90,000 in Paninvest Tbk on August 28, 2024 and sell it today you would earn a total of 17,000 from holding Paninvest Tbk or generate 18.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Bank Pembangunan Timur
Performance |
| Timeline |
| Paninvest Tbk |
| Bank Pembangunan Timur |
Paninvest Tbk and Bank Pembangunan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Bank Pembangunan
The main advantage of trading using opposite Paninvest Tbk and Bank Pembangunan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Bank Pembangunan 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 Pembangunan will offset losses from the drop in Bank Pembangunan'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 |
| Bank Pembangunan vs. Bank Jabar | Bank Pembangunan vs. Sido Muncul PT | Bank Pembangunan vs. Bank Negara Indonesia | Bank Pembangunan vs. Bank Tabungan Negara |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |