Correlation Between Rimo International and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Rimo International and Panin Financial 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 Rimo International and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimo International Lestari and Panin Financial Tbk, you can compare the effects of market volatilities on Rimo International and Panin Financial 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 Rimo International with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimo International and Panin Financial.
Diversification Opportunities for Rimo International and Panin Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rimo and Panin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rimo International Lestari and Panin Financial Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panin Financial Tbk and Rimo International 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 Rimo International Lestari are associated (or correlated) with Panin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panin Financial Tbk has no effect on the direction of Rimo International i.e., Rimo International and Panin Financial go up and down completely randomly.
Pair Corralation between Rimo International and Panin Financial
If you would invest 5,000 in Rimo International Lestari on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Rimo International Lestari or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rimo International Lestari vs. Panin Financial Tbk
Performance |
| Timeline |
| Rimo International |
| Panin Financial Tbk |
Rimo International and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimo International and Panin Financial
The main advantage of trading using opposite Rimo International and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimo International position performs unexpectedly, Panin Financial 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 Panin Financial will offset losses from the drop in Panin Financial's long position.| Rimo International vs. Smartfren Telecom Tbk | Rimo International vs. Steel Pipe Industry | Rimo International vs. Garuda Metalindo Tbk | Rimo International vs. Merdeka Copper Gold |
| Panin Financial vs. Paninvest Tbk | Panin Financial vs. Maskapai Reasuransi Indonesia | Panin Financial vs. Panin Sekuritas Tbk | Panin Financial vs. Wahana Ottomitra Multiartha |
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 Positions Ratings module to 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.
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