Correlation Between Wahana Ottomitra and Bank Panin
Can any of the company-specific risk be diversified away by investing in both Wahana Ottomitra and Bank Panin 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 Wahana Ottomitra and Bank Panin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Ottomitra Multiartha and Bank Panin Syariah, you can compare the effects of market volatilities on Wahana Ottomitra and Bank Panin 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 Wahana Ottomitra with a short position of Bank Panin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Ottomitra and Bank Panin.
Diversification Opportunities for Wahana Ottomitra and Bank Panin
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wahana and Bank is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Ottomitra Multiartha and Bank Panin Syariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Panin Syariah and Wahana Ottomitra 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 Wahana Ottomitra Multiartha are associated (or correlated) with Bank Panin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Panin Syariah has no effect on the direction of Wahana Ottomitra i.e., Wahana Ottomitra and Bank Panin go up and down completely randomly.
Pair Corralation between Wahana Ottomitra and Bank Panin
Assuming the 90 days trading horizon Wahana Ottomitra Multiartha is expected to generate 0.86 times more return on investment than Bank Panin. However, Wahana Ottomitra Multiartha is 1.16 times less risky than Bank Panin. It trades about 0.01 of its potential returns per unit of risk. Bank Panin Syariah is currently generating about 0.0 per unit of risk. If you would invest 34,773 in Wahana Ottomitra Multiartha on September 12, 2024 and sell it today you would earn a total of 227.00 from holding Wahana Ottomitra Multiartha or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wahana Ottomitra Multiartha vs. Bank Panin Syariah
Performance |
| Timeline |
| Wahana Ottomitra Mul |
| Bank Panin Syariah |
Wahana Ottomitra and Bank Panin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Ottomitra and Bank Panin
The main advantage of trading using opposite Wahana Ottomitra and Bank Panin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Ottomitra position performs unexpectedly, Bank Panin 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 Panin will offset losses from the drop in Bank Panin's long position.| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest Tbk |
| Bank Panin vs. Paninvest Tbk | Bank Panin vs. Maskapai Reasuransi Indonesia | Bank Panin vs. Panin Sekuritas Tbk | Bank Panin 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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