Correlation Between Panin Financial and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Paninvest Tbk 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 Paninvest Tbk 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 Paninvest Tbk, you can compare the effects of market volatilities on Panin Financial and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Paninvest Tbk.
Diversification Opportunities for Panin Financial and Paninvest Tbk
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Panin and Paninvest is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Panin Financial i.e., Panin Financial and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Panin Financial and Paninvest Tbk
Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Paninvest Tbk. In addition to that, Panin Financial is 1.43 times more volatile than Paninvest Tbk. It trades about -0.07 of its total potential returns per unit of risk. Paninvest Tbk is currently generating about 0.04 per unit of volatility. If you would invest 103,500 in Paninvest Tbk on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Paninvest Tbk or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Paninvest Tbk
Performance |
| Timeline |
| Panin Financial Tbk |
| Paninvest Tbk |
Panin Financial and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Paninvest Tbk
The main advantage of trading using opposite Panin Financial and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |