Correlation Between Pan Brothers and Sinergi Inti

Can any of the company-specific risk be diversified away by investing in both Pan Brothers and Sinergi Inti 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 Pan Brothers and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pan Brothers Tbk and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Pan Brothers and Sinergi Inti 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 Pan Brothers with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Brothers and Sinergi Inti.

Diversification Opportunities for Pan Brothers and Sinergi Inti

0.0

Correlation Coefficient

Pan Brothers  Sinergi Inti

Pay attention - limited upside

The 3 months correlation between Pan and Sinergi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pan Brothers Tbk and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Pan Brothers 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 Pan Brothers Tbk are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Pan Brothers i.e., Pan Brothers and Sinergi Inti go up and down completely randomly.

Pair Corralation between Pan Brothers and Sinergi Inti

If you would invest  2,300  in Pan Brothers Tbk on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Pan Brothers Tbk or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pan Brothers Tbk  vs.  Sinergi Inti Plastindo

Pan Brothers Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pan Brothers Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pan Brothers is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Sinergi Inti Plastindo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sinergi Inti Plastindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Sinergi Inti is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pan Brothers and Sinergi Inti

The main advantage of trading using opposite Pan Brothers and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Brothers position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.

The idea behind Pan Brothers Tbk and Sinergi Inti Plastindo pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.