Correlation Between Paninvest Tbk and BFI Finance
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and BFI Finance 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 Paninvest Tbk and BFI Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and BFI Finance Indonesia, you can compare the effects of market volatilities on Paninvest Tbk and BFI Finance 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 Paninvest Tbk with a short position of BFI Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and BFI Finance.
Diversification Opportunities for Paninvest Tbk and BFI Finance
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Paninvest and BFI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and BFI Finance Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BFI Finance Indonesia and Paninvest Tbk 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 Paninvest Tbk are associated (or correlated) with BFI Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BFI Finance Indonesia has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and BFI Finance go up and down completely randomly.
Pair Corralation between Paninvest Tbk and BFI Finance
Assuming the 90 days trading horizon Paninvest Tbk is expected to generate 1.26 times more return on investment than BFI Finance. However, Paninvest Tbk is 1.26 times more volatile than BFI Finance Indonesia. It trades about 0.12 of its potential returns per unit of risk. BFI Finance Indonesia is currently generating about -0.03 per unit of risk. If you would invest 97,500 in Paninvest Tbk on September 13, 2024 and sell it today you would earn a total of 20,500 from holding Paninvest Tbk or generate 21.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Paninvest Tbk vs. BFI Finance Indonesia
Performance |
Timeline |
Paninvest Tbk |
BFI Finance Indonesia |
Paninvest Tbk and BFI Finance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Paninvest Tbk and BFI Finance
The main advantage of trading using opposite Paninvest Tbk and BFI Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, BFI Finance 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 BFI Finance will offset losses from the drop in BFI Finance's long position.Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
BFI Finance vs. Paninvest Tbk | BFI Finance vs. Maskapai Reasuransi Indonesia | BFI Finance vs. Panin Sekuritas Tbk | BFI Finance 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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