Correlation Between Paninvest Tbk and Saratoga Investama
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Saratoga Investama 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 Saratoga Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Saratoga Investama Sedaya, you can compare the effects of market volatilities on Paninvest Tbk and Saratoga Investama 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 Saratoga Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Saratoga Investama.
Diversification Opportunities for Paninvest Tbk and Saratoga Investama
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Paninvest and Saratoga is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Saratoga Investama Sedaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investama Sedaya 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 Saratoga Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investama Sedaya has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Saratoga Investama go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Saratoga Investama
Assuming the 90 days trading horizon Paninvest Tbk is expected to under-perform the Saratoga Investama. But the stock apears to be less risky and, when comparing its historical volatility, Paninvest Tbk is 1.25 times less risky than Saratoga Investama. The stock trades about -0.09 of its potential returns per unit of risk. The Saratoga Investama Sedaya is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 238,000 in Saratoga Investama Sedaya on August 24, 2024 and sell it today you would lose (13,000) from holding Saratoga Investama Sedaya or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Saratoga Investama Sedaya
Performance |
| Timeline |
| Paninvest Tbk |
| Saratoga Investama Sedaya |
Paninvest Tbk and Saratoga Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Saratoga Investama
The main advantage of trading using opposite Paninvest Tbk and Saratoga Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Saratoga Investama 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 Saratoga Investama will offset losses from the drop in Saratoga Investama'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 |
| Saratoga Investama vs. Paninvest Tbk | Saratoga Investama vs. Maskapai Reasuransi Indonesia | Saratoga Investama vs. Panin Sekuritas Tbk | Saratoga Investama 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |