Correlation Between Panin Financial and PT Jobubu

Can any of the company-specific risk be diversified away by investing in both Panin Financial and PT Jobubu 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 PT Jobubu 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 PT Jobubu Jarum, you can compare the effects of market volatilities on Panin Financial and PT Jobubu 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 PT Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panin Financial and PT Jobubu.

Diversification Opportunities for Panin Financial and PT Jobubu

0.9

Correlation Coefficient

Panin Financial  PT Jobubu

Almost no diversification

The 3 months correlation between Panin and BEER is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Panin Financial Tbk and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum 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 PT Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of Panin Financial i.e., Panin Financial and PT Jobubu go up and down completely randomly.

Pair Corralation between Panin Financial and PT Jobubu

Assuming the 90 days trading horizon Panin Financial Tbk is expected to generate 1.0 times more return on investment than PT Jobubu. However, Panin Financial is 1.0 times more volatile than PT Jobubu Jarum. It trades about -0.06 of its potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.25 per unit of risk. If you would invest  43,000  in Panin Financial Tbk on December 29, 2024 and sell it today you would lose (6,200) from holding Panin Financial Tbk or give up 14.42% of portfolio value over 90 days.

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

Panin Financial Tbk  vs.  PT Jobubu Jarum

Panin Financial Tbk

Risk-Adjusted Performance

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 conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PT Jobubu Jarum

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Jobubu Jarum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Panin Financial and PT Jobubu

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

The idea behind Panin Financial Tbk and PT Jobubu Jarum 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.