Correlation Between Panin Financial and Hoffmen Cleanindo
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Hoffmen Cleanindo 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 Hoffmen Cleanindo 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 Hoffmen Cleanindo, you can compare the effects of market volatilities on Panin Financial and Hoffmen Cleanindo 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 Hoffmen Cleanindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Hoffmen Cleanindo.
Diversification Opportunities for Panin Financial and Hoffmen Cleanindo
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panin and Hoffmen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Hoffmen Cleanindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoffmen Cleanindo 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 Hoffmen Cleanindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoffmen Cleanindo has no effect on the direction of Panin Financial i.e., Panin Financial and Hoffmen Cleanindo go up and down completely randomly.
Pair Corralation between Panin Financial and Hoffmen Cleanindo
Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Hoffmen Cleanindo. In addition to that, Panin Financial is 1.17 times more volatile than Hoffmen Cleanindo. It trades about -0.48 of its total potential returns per unit of risk. Hoffmen Cleanindo is currently generating about 0.23 per unit of volatility. If you would invest 18,900 in Hoffmen Cleanindo on November 27, 2024 and sell it today you would earn a total of 1,300 from holding Hoffmen Cleanindo or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Hoffmen Cleanindo
Performance |
| Timeline |
| Panin Financial Tbk |
| Hoffmen Cleanindo |
Panin Financial and Hoffmen Cleanindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Hoffmen Cleanindo
The main advantage of trading using opposite Panin Financial and Hoffmen Cleanindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Hoffmen Cleanindo 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 Hoffmen Cleanindo will offset losses from the drop in Hoffmen Cleanindo'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 |
| Hoffmen Cleanindo vs. Global Mediacom Tbk | Hoffmen Cleanindo vs. Weha Transportasi Indonesia | Hoffmen Cleanindo vs. Mahaka Media Tbk | Hoffmen Cleanindo vs. Inocycle Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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