Correlation Between Panin Financial and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology Tbk, you can compare the effects of market volatilities on Panin Financial and Inocycle Technology 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 Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Inocycle Technology.
Diversification Opportunities for Panin Financial and Inocycle Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Panin and Inocycle is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology Tbk 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 Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Panin Financial i.e., Panin Financial and Inocycle Technology go up and down completely randomly.
Pair Corralation between Panin Financial and Inocycle Technology
Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Inocycle Technology. In addition to that, Panin Financial is 1.45 times more volatile than Inocycle Technology Tbk. It trades about -0.16 of its total potential returns per unit of risk. Inocycle Technology Tbk is currently generating about -0.13 per unit of volatility. If you would invest 10,600 in Inocycle Technology Tbk on September 1, 2024 and sell it today you would lose (600.00) from holding Inocycle Technology Tbk or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Panin Financial Tbk |
| Inocycle Technology Tbk |
Panin Financial and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Inocycle Technology
The main advantage of trading using opposite Panin Financial and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology'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 |
| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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