Correlation Between Paninvest Tbk and Malacca Trust
Can any of the company-specific risk be diversified away by investing in both Paninvest Tbk and Malacca Trust 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 Malacca Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paninvest Tbk and Malacca Trust Wuwungan, you can compare the effects of market volatilities on Paninvest Tbk and Malacca Trust 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 Malacca Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paninvest Tbk and Malacca Trust.
Diversification Opportunities for Paninvest Tbk and Malacca Trust
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Paninvest and Malacca is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Paninvest Tbk and Malacca Trust Wuwungan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Trust Wuwungan 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 Malacca Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Trust Wuwungan has no effect on the direction of Paninvest Tbk i.e., Paninvest Tbk and Malacca Trust go up and down completely randomly.
Pair Corralation between Paninvest Tbk and Malacca Trust
Assuming the 90 days trading horizon Paninvest Tbk is expected to under-perform the Malacca Trust. In addition to that, Paninvest Tbk is 1.06 times more volatile than Malacca Trust Wuwungan. It trades about -0.22 of its total potential returns per unit of risk. Malacca Trust Wuwungan is currently generating about -0.19 per unit of volatility. If you would invest 15,900 in Malacca Trust Wuwungan on December 25, 2024 and sell it today you would lose (2,800) from holding Malacca Trust Wuwungan or give up 17.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Paninvest Tbk vs. Malacca Trust Wuwungan
Performance |
Timeline |
Paninvest Tbk |
Malacca Trust Wuwungan |
Paninvest Tbk and Malacca Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Paninvest Tbk and Malacca Trust
The main advantage of trading using opposite Paninvest Tbk and Malacca Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paninvest Tbk position performs unexpectedly, Malacca Trust 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 Malacca Trust will offset losses from the drop in Malacca Trust'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 |
Malacca Trust vs. Asuransi Jiwa Syariah | Malacca Trust vs. Kioson Komersial Indonesia | Malacca Trust vs. Victoria Insurance Tbk | Malacca Trust vs. Megapower Makmur 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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