Correlation Between Panin Financial and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Panin Financial and Trimegah Securities 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 Trimegah Securities 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 Trimegah Securities Tbk, you can compare the effects of market volatilities on Panin Financial and Trimegah Securities 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 Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Trimegah Securities.
Diversification Opportunities for Panin Financial and Trimegah Securities
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panin and Trimegah is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities 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 Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of Panin Financial i.e., Panin Financial and Trimegah Securities go up and down completely randomly.
Pair Corralation between Panin Financial and Trimegah Securities
Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Trimegah Securities. But the stock apears to be less risky and, when comparing its historical volatility, Panin Financial Tbk is 1.19 times less risky than Trimegah Securities. The stock trades about -0.07 of its potential returns per unit of risk. The Trimegah Securities Tbk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 35,600 in Trimegah Securities Tbk on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Trimegah Securities Tbk or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Panin Financial Tbk vs. Trimegah Securities Tbk
Performance |
| Timeline |
| Panin Financial Tbk |
| Trimegah Securities Tbk |
Panin Financial and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panin Financial and Trimegah Securities
The main advantage of trading using opposite Panin Financial and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panin Financial position performs unexpectedly, Trimegah Securities 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 Trimegah Securities will offset losses from the drop in Trimegah Securities' 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 |
| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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