Correlation Between PC Connection and PANIN INSURANCE

Can any of the company-specific risk be diversified away by investing in both PC Connection and PANIN INSURANCE 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 PC Connection and PANIN INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PC Connection and PANIN INSURANCE, you can compare the effects of market volatilities on PC Connection and PANIN INSURANCE 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 PC Connection with a short position of PANIN INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PC Connection and PANIN INSURANCE.

Diversification Opportunities for PC Connection and PANIN INSURANCE

0.0

Correlation Coefficient

PC Connection  PANIN INSURANCE

Pay attention - limited upside

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

Pair Corralation between PC Connection and PANIN INSURANCE

If you would invest  3.80  in PANIN INSURANCE on December 25, 2024 and sell it today you would earn a total of  0.00  from holding PANIN INSURANCE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

PC Connection  vs.  PANIN INSURANCE

PC Connection

Risk-Adjusted Performance

Very Weak

Over the last 90 days PC Connection has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PANIN INSURANCE

Risk-Adjusted Performance

Very Weak

Over the last 90 days PANIN INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PANIN INSURANCE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PC Connection and PANIN INSURANCE

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

The idea behind PC Connection and PANIN INSURANCE 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 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.