Correlation Between Pudjiadi Sons and Bank Pan
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Sons and Bank Pan 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 Pudjiadi Sons and Bank Pan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pudjiadi Sons Tbk and Bank Pan Indonesia, you can compare the effects of market volatilities on Pudjiadi Sons and Bank Pan 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 Pudjiadi Sons with a short position of Bank Pan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Sons and Bank Pan.
Diversification Opportunities for Pudjiadi Sons and Bank Pan
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pudjiadi and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Sons Tbk and Bank Pan Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pan Indonesia and Pudjiadi Sons 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 Pudjiadi Sons Tbk are associated (or correlated) with Bank Pan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pan Indonesia has no effect on the direction of Pudjiadi Sons i.e., Pudjiadi Sons and Bank Pan go up and down completely randomly.
Pair Corralation between Pudjiadi Sons and Bank Pan
Assuming the 90 days trading horizon Pudjiadi Sons Tbk is expected to generate 5.93 times more return on investment than Bank Pan. However, Pudjiadi Sons is 5.93 times more volatile than Bank Pan Indonesia. It trades about 0.46 of its potential returns per unit of risk. Bank Pan Indonesia is currently generating about -0.15 per unit of risk. If you would invest 45,400 in Pudjiadi Sons Tbk on August 30, 2024 and sell it today you would earn a total of 90,600 from holding Pudjiadi Sons Tbk or generate 199.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Sons Tbk vs. Bank Pan Indonesia
Performance |
| Timeline |
| Pudjiadi Sons Tbk |
| Bank Pan Indonesia |
Pudjiadi Sons and Bank Pan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Sons and Bank Pan
The main advantage of trading using opposite Pudjiadi Sons and Bank Pan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Sons position performs unexpectedly, Bank Pan 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 Bank Pan will offset losses from the drop in Bank Pan's long position.| Pudjiadi Sons vs. HK Metals Utama | Pudjiadi Sons vs. Alumindo Light Metal | Pudjiadi Sons vs. PT Data Sinergitama | Pudjiadi Sons vs. Ciptadana Asset Management |
| Bank Pan vs. Bank Danamon Indonesia | Bank Pan vs. Bank Cimb Niaga | Bank Pan vs. Panin Financial Tbk | Bank Pan vs. Bank Maybank 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |