Correlation Between Panin Financial and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Indosterling Technomedia 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 Indosterling Technomedia 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 Indosterling Technomedia Tbk, you can compare the effects of market volatilities on Panin Financial and Indosterling Technomedia 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 Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Indosterling Technomedia.
Diversification Opportunities for Panin Financial and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panin and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia 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 Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of Panin Financial i.e., Panin Financial and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between Panin Financial and Indosterling Technomedia
If you would invest 26,800 in Panin Financial Tbk on September 1, 2024 and sell it today you would earn a total of 16,200 from holding Panin Financial Tbk or generate 60.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panin Financial Tbk vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| Panin Financial Tbk |
| Indosterling Technomedia |
Panin Financial and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Indosterling Technomedia
The main advantage of trading using opposite Panin Financial and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia'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 |
| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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