Correlation Between Paninvest Tbk and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Dow Jones Industrial, you can compare the effects of market volatilities on Paninvest Tbk and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Dow Jones.
Diversification Opportunities for Paninvest Tbk and Dow Jones
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Paninvest and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Dow Jones go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Dow Jones
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 4.12 times more return on investment than Dow Jones. However, Paninvest Tbk is 4.12 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of risk. If you would invest 93,500 in Paninvest Tbk on August 28, 2024 and sell it today you would earn a total of 13,000 from holding Paninvest Tbk or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Dow Jones Industrial
Performance |
| Timeline |
Paninvest Tbk and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Paninvest Tbk
Pair trading matchups for Paninvest Tbk
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Paninvest Tbk and Dow Jones
The main advantage of trading using opposite Paninvest Tbk and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |