Correlation Between Paninvest Tbk and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Lenox Pasifik 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 Lenox Pasifik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Lenox Pasifik Investama, you can compare the effects of market volatilities on Paninvest Tbk and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Lenox Pasifik.
Diversification Opportunities for Paninvest Tbk and Lenox Pasifik
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Paninvest and Lenox is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Lenox Pasifik
Assuming the 90 days trading horizon Paninvest Tbk is expected to under-perform the Lenox Pasifik. But the stock apears to be less risky and, when comparing its historical volatility, Paninvest Tbk is 1.42 times less risky than Lenox Pasifik. The stock trades about -0.01 of its potential returns per unit of risk. The Lenox Pasifik Investama is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 8,200 in Lenox Pasifik Investama on August 24, 2024 and sell it today you would lose (1,500) from holding Lenox Pasifik Investama or give up 18.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Paninvest Tbk |
| Lenox Pasifik Investama |
Paninvest Tbk and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Lenox Pasifik
The main advantage of trading using opposite Paninvest Tbk and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik'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 |
| Lenox Pasifik vs. Paninvest Tbk | Lenox Pasifik vs. Maskapai Reasuransi Indonesia | Lenox Pasifik vs. Panin Sekuritas Tbk | Lenox Pasifik 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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