Correlation Between Kioson Komersial and Bank Panin

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Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and Bank Panin 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 Kioson Komersial and Bank Panin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kioson Komersial Indonesia and Bank Panin Syariah, you can compare the effects of market volatilities on Kioson Komersial and Bank Panin 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 Kioson Komersial with a short position of Bank Panin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and Bank Panin.

Diversification Opportunities for Kioson Komersial and Bank Panin

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Kioson and Bank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and Bank Panin Syariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Panin Syariah and Kioson Komersial 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 Kioson Komersial Indonesia are associated (or correlated) with Bank Panin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Panin Syariah has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and Bank Panin go up and down completely randomly.

Pair Corralation between Kioson Komersial and Bank Panin

Assuming the 90 days trading horizon Kioson Komersial Indonesia is expected to generate 2.66 times more return on investment than Bank Panin. However, Kioson Komersial is 2.66 times more volatile than Bank Panin Syariah. It trades about 0.02 of its potential returns per unit of risk. Bank Panin Syariah is currently generating about -0.01 per unit of risk. If you would invest  5,000  in Kioson Komersial Indonesia on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Kioson Komersial Indonesia or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kioson Komersial Indonesia  vs.  Bank Panin Syariah

 Performance 
       Timeline  
Kioson Komersial Ind 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Kioson Komersial Indonesia are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Kioson Komersial is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Bank Panin Syariah 

Risk-Adjusted Performance

0 of 100

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

Kioson Komersial and Bank Panin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kioson Komersial and Bank Panin

The main advantage of trading using opposite Kioson Komersial and Bank Panin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, Bank Panin 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 Bank Panin will offset losses from the drop in Bank Panin's long position.
The idea behind Kioson Komersial Indonesia and Bank Panin Syariah 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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