Correlation Between Bank Maspion and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Bank Maspion and Paninvest Tbk 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 Bank Maspion and Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Maspion Indonesia and Paninvest Tbk, you can compare the effects of market volatilities on Bank Maspion and Paninvest Tbk 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 Bank Maspion with a short position of Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Maspion and Paninvest Tbk.
Diversification Opportunities for Bank Maspion and Paninvest Tbk
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Paninvest is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank Maspion Indonesia and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk and Bank Maspion 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 Bank Maspion Indonesia are associated (or correlated) with Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Bank Maspion i.e., Bank Maspion and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Bank Maspion and Paninvest Tbk
Assuming the 90 days trading horizon Bank Maspion is expected to generate 3.6 times less return on investment than Paninvest Tbk. In addition to that, Bank Maspion is 1.78 times more volatile than Paninvest Tbk. It trades about 0.02 of its total potential returns per unit of risk. Paninvest Tbk is currently generating about 0.11 per unit of volatility. If you would invest 98,500 in Paninvest Tbk on September 12, 2024 and sell it today you would earn a total of 19,000 from holding Paninvest Tbk or generate 19.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Maspion Indonesia vs. Paninvest Tbk
Performance |
Timeline |
Bank Maspion Indonesia |
Paninvest Tbk |
Bank Maspion and Paninvest Tbk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Maspion and Paninvest Tbk
The main advantage of trading using opposite Bank Maspion and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Maspion position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk's long position.Bank Maspion vs. Bank Mestika Dharma | Bank Maspion vs. Bank Sinarmas Tbk | Bank Maspion vs. Bank Ina Perdana | Bank Maspion vs. Bank Qnb Indonesia |
Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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