Correlation Between Paninvest Tbk and Bank Maybank
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Bank Maybank 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 Maybank 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 Maybank Indonesia, you can compare the effects of market volatilities on Paninvest Tbk and Bank Maybank 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 Maybank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Bank Maybank.
Diversification Opportunities for Paninvest Tbk and Bank Maybank
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Paninvest and Bank is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Bank Maybank Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Maybank Indonesia 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 Maybank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Maybank Indonesia has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Bank Maybank go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Bank Maybank
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 1.28 times more return on investment than Bank Maybank. However, Paninvest Tbk is 1.28 times more volatile than Bank Maybank Indonesia. It trades about 0.07 of its potential returns per unit of risk. Bank Maybank Indonesia is currently generating about -0.01 per unit of risk. If you would invest 88,000 in Paninvest Tbk on September 3, 2024 and sell it today you would earn a total of 18,500 from holding Paninvest Tbk or generate 21.02% 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 Maybank Indonesia
Performance |
| Timeline |
| Paninvest Tbk |
| Bank Maybank Indonesia |
Paninvest Tbk and Bank Maybank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Bank Maybank
The main advantage of trading using opposite Paninvest Tbk and Bank Maybank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Bank Maybank 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 Maybank will offset losses from the drop in Bank Maybank'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 Maybank vs. Paninvest Tbk | Bank Maybank vs. Mitra Pinasthika Mustika | Bank Maybank vs. Jakarta Int Hotels | Bank Maybank 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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