Correlation Between Trinitan Metals and Panin Financial

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

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

Diversification Opportunities for Trinitan Metals and Panin Financial

0.0

Correlation Coefficient

Trinitan Metals  Panin Financial

Pay attention - limited upside

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

Pair Corralation between Trinitan Metals and Panin Financial

If you would invest  42,800  in Panin Financial Tbk on August 31, 2024 and sell it today you would lose (1,000.00) from holding Panin Financial Tbk or give up 2.34% of portfolio value over 90 days.

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

Trinitan Metals and  vs.  Panin Financial Tbk

Trinitan Metals

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Trinitan Metals and Panin Financial

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

The idea behind Trinitan Metals and and Panin Financial 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.