Correlation Between Trimegah Securities and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Trimegah Securities 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 Trimegah Securities and Panin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Securities Tbk and Panin Financial Tbk, you can compare the effects of market volatilities on Trimegah Securities 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 Trimegah Securities with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Securities and Panin Financial.
Diversification Opportunities for Trimegah Securities and Panin Financial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trimegah and Panin is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Securities Tbk 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 Trimegah Securities 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 Trimegah Securities Tbk 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 Trimegah Securities i.e., Trimegah Securities and Panin Financial go up and down completely randomly.
Pair Corralation between Trimegah Securities and Panin Financial
Assuming the 90 days trading horizon Trimegah Securities Tbk is expected to generate 1.19 times more return on investment than Panin Financial. However, Trimegah Securities is 1.19 times more volatile than Panin Financial Tbk. It trades about 0.07 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about -0.07 per unit of risk. 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 |
Trimegah Securities Tbk vs. Panin Financial Tbk
Performance |
| Timeline |
| Trimegah Securities Tbk |
| Panin Financial Tbk |
Trimegah Securities and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Securities and Panin Financial
The main advantage of trading using opposite Trimegah Securities and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Securities 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.| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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