Correlation Between Paninvest Tbk and Bank Nationalnobu
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Bank Nationalnobu 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 Nationalnobu 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 Nationalnobu Tbk, you can compare the effects of market volatilities on Paninvest Tbk and Bank Nationalnobu 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 Nationalnobu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Bank Nationalnobu.
Diversification Opportunities for Paninvest Tbk and Bank Nationalnobu
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Paninvest and Bank is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Bank Nationalnobu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Nationalnobu Tbk 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 Nationalnobu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Nationalnobu Tbk has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Bank Nationalnobu go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Bank Nationalnobu
Assuming the 90 days trading horizon Paninvest Tbk is expected to under-perform the Bank Nationalnobu. In addition to that, Paninvest Tbk is 1.85 times more volatile than Bank Nationalnobu Tbk. It trades about -0.05 of its total potential returns per unit of risk. Bank Nationalnobu Tbk is currently generating about 0.07 per unit of volatility. If you would invest 64,500 in Bank Nationalnobu Tbk on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Bank Nationalnobu Tbk or generate 2.33% 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. Bank Nationalnobu Tbk
Performance |
| Timeline |
| Paninvest Tbk |
| Bank Nationalnobu Tbk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Paninvest Tbk and Bank Nationalnobu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Bank Nationalnobu
The main advantage of trading using opposite Paninvest Tbk and Bank Nationalnobu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Bank Nationalnobu 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 Nationalnobu will offset losses from the drop in Bank Nationalnobu's long position.| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Clipan Finance Indonesia |
| Bank Nationalnobu vs. Humpuss Intermoda Transportasi | Bank Nationalnobu vs. Hero Supermarket Tbk | Bank Nationalnobu vs. Anabatic Technologies Tbk | Bank Nationalnobu vs. Kedawung Setia Industrial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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