Correlation Between Panin Financial and Anabatic Technologies

Can any of the company-specific risk be diversified away by investing in both Panin Financial and Anabatic Technologies 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 Panin Financial and Anabatic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Panin Financial Tbk and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Panin Financial and Anabatic Technologies 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 Panin Financial with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and Anabatic Technologies.

Diversification Opportunities for Panin Financial and Anabatic Technologies

0.13

Correlation Coefficient

Panin Financial  Anabatic Technologies

Average diversification

The 3 months correlation between Panin and Anabatic is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Panin Financial 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 Panin Financial Tbk are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Panin Financial i.e., Panin Financial and Anabatic Technologies go up and down completely randomly.

Pair Corralation between Panin Financial and Anabatic Technologies

Assuming the 90 days trading horizon Panin Financial Tbk is expected to under-perform the Anabatic Technologies. In addition to that, Panin Financial is 1.08 times more volatile than Anabatic Technologies Tbk. It trades about -0.34 of its total potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about 0.38 per unit of volatility. If you would invest  36,000  in Anabatic Technologies Tbk on October 11, 2024 and sell it today you would earn a total of  5,000  from holding Anabatic Technologies Tbk or generate 13.89% return on investment over 90 days.

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

Panin Financial Tbk  vs.  Anabatic Technologies Tbk

Panin Financial Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

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

Anabatic Technologies Tbk

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anabatic Technologies Tbk are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Anabatic Technologies 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 Panin Financial and Anabatic Technologies

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

The idea behind Panin Financial Tbk and Anabatic Technologies Tbk 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.