Correlation Between Paninvest Tbk and Tifa Finance
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Tifa Finance 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 Tifa Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Tifa Finance Tbk, you can compare the effects of market volatilities on Paninvest Tbk and Tifa Finance 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 Tifa Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Tifa Finance.
Diversification Opportunities for Paninvest Tbk and Tifa Finance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Paninvest and Tifa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Tifa Finance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifa Finance 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 Tifa Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifa Finance Tbk has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Tifa Finance go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Tifa Finance
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 13.79 times more return on investment than Tifa Finance. However, Paninvest Tbk is 13.79 times more volatile than Tifa Finance Tbk. It trades about 0.11 of its potential returns per unit of risk. Tifa Finance Tbk is currently generating about -0.26 per unit of risk. If you would invest 98,500 in Paninvest Tbk on September 12, 2024 and sell it today you would earn a total of 19,000 from holding Paninvest Tbk or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Paninvest Tbk vs. Tifa Finance Tbk
Performance |
| Timeline |
| Paninvest Tbk |
| Tifa Finance Tbk |
Paninvest Tbk and Tifa Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Tifa Finance
The main advantage of trading using opposite Paninvest Tbk and Tifa Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Tifa Finance 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 Tifa Finance will offset losses from the drop in Tifa Finance'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 |
| Tifa Finance vs. Verena Multi Finance | Tifa Finance vs. Trust Finance Indonesia | Tifa Finance vs. Wahana Ottomitra Multiartha | Tifa Finance vs. Mandala Multifinance Tbk |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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