Correlation Between Panin Financial and Indo Acidatama
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Indo Acidatama 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 Indo Acidatama 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 Indo Acidatama Tbk, you can compare the effects of market volatilities on Panin Financial and Indo Acidatama 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 Indo Acidatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Indo Acidatama.
Diversification Opportunities for Panin Financial and Indo Acidatama
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Panin and Indo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Indo Acidatama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Acidatama 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 Indo Acidatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Acidatama Tbk has no effect on the direction of Panin Financial i.e., Panin Financial and Indo Acidatama go up and down completely randomly.
Pair Corralation between Panin Financial and Indo Acidatama
If you would invest 5,000 in Indo Acidatama Tbk on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Indo Acidatama Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Indo Acidatama Tbk
Performance |
| Timeline |
| Panin Financial Tbk |
| Indo Acidatama Tbk |
Panin Financial and Indo Acidatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Indo Acidatama
The main advantage of trading using opposite Panin Financial and Indo Acidatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Indo Acidatama 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 Indo Acidatama will offset losses from the drop in Indo Acidatama'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 |
| Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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