Correlation Between Panin Financial and Maskapai Reasuransi
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Maskapai Reasuransi 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 Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia, you can compare the effects of market volatilities on Panin Financial and Maskapai Reasuransi 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 Maskapai Reasuransi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Maskapai Reasuransi.
Diversification Opportunities for Panin Financial and Maskapai Reasuransi
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panin and Maskapai is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Maskapai Reasuransi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maskapai Reasuransi 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 Maskapai Reasuransi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maskapai Reasuransi has no effect on the direction of Panin Financial i.e., Panin Financial and Maskapai Reasuransi go up and down completely randomly.
Pair Corralation between Panin Financial and Maskapai Reasuransi
Assuming the 90 days trading horizon Panin Financial Tbk is expected to generate 0.89 times more return on investment than Maskapai Reasuransi. However, Panin Financial Tbk is 1.12 times less risky than Maskapai Reasuransi. It trades about 0.07 of its potential returns per unit of risk. Maskapai Reasuransi Indonesia is currently generating about 0.0 per unit of risk. If you would invest 34,400 in Panin Financial Tbk on August 29, 2024 and sell it today you would earn a total of 8,000 from holding Panin Financial Tbk or generate 23.26% 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. Maskapai Reasuransi Indonesia
Performance |
| Timeline |
| Panin Financial Tbk |
| Maskapai Reasuransi |
Panin Financial and Maskapai Reasuransi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Maskapai Reasuransi
The main advantage of trading using opposite Panin Financial and Maskapai Reasuransi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Maskapai Reasuransi 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 Maskapai Reasuransi will offset losses from the drop in Maskapai Reasuransi'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 |
| Maskapai Reasuransi vs. Lippo General Insurance | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Mandala Multifinance Tbk | Maskapai Reasuransi vs. Bank Mayapada Internasional |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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