Correlation Between Sinar Mas and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Sinar Mas 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 Sinar Mas and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinar Mas Multiartha and Panin Financial Tbk, you can compare the effects of market volatilities on Sinar Mas 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 Sinar Mas with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinar Mas and Panin Financial.
Diversification Opportunities for Sinar Mas and Panin Financial
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sinar and Panin is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sinar Mas Multiartha 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 Sinar Mas 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 Sinar Mas Multiartha 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 Sinar Mas i.e., Sinar Mas and Panin Financial go up and down completely randomly.
Pair Corralation between Sinar Mas and Panin Financial
Assuming the 90 days trading horizon Sinar Mas is expected to generate 3.33 times less return on investment than Panin Financial. But when comparing it to its historical volatility, Sinar Mas Multiartha is 1.44 times less risky than Panin Financial. It trades about 0.02 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 26,600 in Panin Financial Tbk on December 11, 2024 and sell it today you would earn a total of 7,400 from holding Panin Financial Tbk or generate 27.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinar Mas Multiartha vs. Panin Financial Tbk
Performance |
| Timeline |
| Sinar Mas Multiartha |
| Panin Financial Tbk |
Sinar Mas and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinar Mas and Panin Financial
The main advantage of trading using opposite Sinar Mas and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinar Mas 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.| Sinar Mas vs. Bank Mega Tbk | ||
| Sinar Mas vs. Trimegah Securities Tbk | ||
| Sinar Mas vs. Paninvest Tbk | ||
| Sinar Mas vs. Sinar Mas Agro |
| Panin Financial vs. Bank Pan Indonesia | ||
| Panin Financial vs. Paninvest Tbk | ||
| Panin Financial vs. Kawasan Industri Jababeka | ||
| Panin Financial vs. Global Mediacom 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world |