Correlation Between Panin Financial and Lion Metal
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Lion Metal 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 Lion Metal 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 Lion Metal Works, you can compare the effects of market volatilities on Panin Financial and Lion Metal 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 Lion Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Lion Metal.
Diversification Opportunities for Panin Financial and Lion Metal
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panin and Lion is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Lion Metal Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Metal Works 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 Lion Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Metal Works has no effect on the direction of Panin Financial i.e., Panin Financial and Lion Metal go up and down completely randomly.
Pair Corralation between Panin Financial and Lion Metal
Assuming the 90 days trading horizon Panin Financial is expected to generate 4.18 times less return on investment than Lion Metal. But when comparing it to its historical volatility, Panin Financial Tbk is 2.34 times less risky than Lion Metal. It trades about 0.01 of its potential returns per unit of risk. Lion Metal Works is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 48,281 in Lion Metal Works on November 28, 2024 and sell it today you would lose (4,881) from holding Lion Metal Works or give up 10.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Lion Metal Works
Performance |
| Timeline |
| Panin Financial Tbk |
| Lion Metal Works |
Panin Financial and Lion Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Lion Metal
The main advantage of trading using opposite Panin Financial and Lion Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Lion Metal 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 Lion Metal will offset losses from the drop in Lion Metal'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 |
| Lion Metal vs. Lionmesh Prima Tbk | Lion Metal vs. Pelangi Indah Canindo | Lion Metal vs. Indal Aluminium Industry | Lion Metal vs. Intanwijaya Internasional 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |