Correlation Between Paninvest Tbk and Wahana Ottomitra
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Wahana Ottomitra 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 Wahana Ottomitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Wahana Ottomitra Multiartha, you can compare the effects of market volatilities on Paninvest Tbk and Wahana Ottomitra 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 Wahana Ottomitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Wahana Ottomitra.
Diversification Opportunities for Paninvest Tbk and Wahana Ottomitra
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Paninvest and Wahana is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Wahana Ottomitra Multiartha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Ottomitra Mul 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 Wahana Ottomitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Ottomitra Mul has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Wahana Ottomitra go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Wahana Ottomitra
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 2.8 times more return on investment than Wahana Ottomitra. However, Paninvest Tbk is 2.8 times more volatile than Wahana Ottomitra Multiartha. It trades about 0.08 of its potential returns per unit of risk. Wahana Ottomitra Multiartha is currently generating about 0.01 per unit of risk. If you would invest 85,000 in Paninvest Tbk on November 4, 2024 and sell it today you would earn a total of 19,500 from holding Paninvest Tbk or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paninvest Tbk vs. Wahana Ottomitra Multiartha
Performance |
| Timeline |
| Paninvest Tbk |
| Wahana Ottomitra Mul |
Paninvest Tbk and Wahana Ottomitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paninvest Tbk and Wahana Ottomitra
The main advantage of trading using opposite Paninvest Tbk and Wahana Ottomitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Wahana Ottomitra 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 Wahana Ottomitra will offset losses from the drop in Wahana Ottomitra'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 |
| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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