Correlation Between Panin Financial and Equity Development
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Equity Development 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 Panin Financial and Equity Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panin Financial Tbk and Equity Development Investment, you can compare the effects of market volatilities on Panin Financial and Equity Development 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 Panin Financial with a short position of Equity Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Equity Development.
Diversification Opportunities for Panin Financial and Equity Development
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panin and Equity is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Equity Development Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Development and Panin Financial 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 Panin Financial Tbk are associated (or correlated) with Equity Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Development has no effect on the direction of Panin Financial i.e., Panin Financial and Equity Development go up and down completely randomly.
Pair Corralation between Panin Financial and Equity Development
Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Equity Development. But the stock apears to be less risky and, when comparing its historical volatility, Panin Financial Tbk is 1.53 times less risky than Equity Development. The stock trades about -0.27 of its potential returns per unit of risk. The Equity Development Investment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,200 in Equity Development Investment on December 10, 2024 and sell it today you would earn a total of 200.00 from holding Equity Development Investment or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Equity Development Investment
Performance |
| Timeline |
| Panin Financial Tbk |
| Equity Development |
Panin Financial and Equity Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Equity Development
The main advantage of trading using opposite Panin Financial and Equity Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Equity Development 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 Equity Development will offset losses from the drop in Equity Development's long position.| Panin Financial vs. Bank Pan Indonesia | ||
| Panin Financial vs. Paninvest Tbk | ||
| Panin Financial vs. Kawasan Industri Jababeka | ||
| Panin Financial vs. Global Mediacom Tbk |
| Equity Development vs. Pacific Strategic Financial | ||
| Equity Development vs. Asuransi Harta Aman | ||
| Equity Development vs. Buana Finance Tbk | ||
| Equity Development vs. Asuransi Bintang 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |