Correlation Between Wahana Ottomitra and Panin Financial
Can any of the company-specific risk be diversified away by investing in both Wahana Ottomitra 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 Wahana Ottomitra and Panin Financial 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 Panin Financial Tbk, you can compare the effects of market volatilities on Wahana Ottomitra 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 Wahana Ottomitra with a short position of Panin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Ottomitra and Panin Financial.
Diversification Opportunities for Wahana Ottomitra and Panin Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wahana and Panin is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Ottomitra 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 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 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 Wahana Ottomitra i.e., Wahana Ottomitra and Panin Financial go up and down completely randomly.
Pair Corralation between Wahana Ottomitra and Panin Financial
Assuming the 90 days trading horizon Wahana Ottomitra Multiartha is expected to generate 0.35 times more return on investment than Panin Financial. However, Wahana Ottomitra Multiartha is 2.88 times less risky than Panin Financial. It trades about 0.03 of its potential returns per unit of risk. Panin Financial Tbk is currently generating about -0.01 per unit of risk. If you would invest 35,600 in Wahana Ottomitra Multiartha on August 29, 2024 and sell it today you would earn a total of 600.00 from holding Wahana Ottomitra Multiartha or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Wahana Ottomitra Multiartha vs. Panin Financial Tbk
Performance |
| Timeline |
| Wahana Ottomitra Mul |
| Panin Financial Tbk |
Wahana Ottomitra and Panin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Ottomitra and Panin Financial
The main advantage of trading using opposite Wahana Ottomitra and Panin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Ottomitra 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.| Wahana Ottomitra vs. Trimegah Securities Tbk | Wahana Ottomitra vs. Clipan Finance Indonesia | Wahana Ottomitra vs. Adira Dinamika Multi | Wahana Ottomitra vs. Paninvest 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |