Correlation Between Bank Panin and Fortune Mate
Can any of the company-specific risk be diversified away by investing in both Bank Panin and Fortune Mate 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 Bank Panin and Fortune Mate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Panin Syariah and Fortune Mate Indonesia, you can compare the effects of market volatilities on Bank Panin and Fortune Mate 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 Bank Panin with a short position of Fortune Mate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Panin and Fortune Mate.
Diversification Opportunities for Bank Panin and Fortune Mate
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Fortune is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank Panin Syariah and Fortune Mate Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortune Mate Indonesia and Bank Panin 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 Bank Panin Syariah are associated (or correlated) with Fortune Mate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortune Mate Indonesia has no effect on the direction of Bank Panin i.e., Bank Panin and Fortune Mate go up and down completely randomly.
Pair Corralation between Bank Panin and Fortune Mate
Assuming the 90 days trading horizon Bank Panin Syariah is expected to under-perform the Fortune Mate. But the stock apears to be less risky and, when comparing its historical volatility, Bank Panin Syariah is 4.57 times less risky than Fortune Mate. The stock trades about -0.01 of its potential returns per unit of risk. The Fortune Mate Indonesia is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 23,600 in Fortune Mate Indonesia on September 14, 2024 and sell it today you would earn a total of 30,900 from holding Fortune Mate Indonesia or generate 130.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Panin Syariah vs. Fortune Mate Indonesia
Performance |
Timeline |
Bank Panin Syariah |
Fortune Mate Indonesia |
Bank Panin and Fortune Mate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Panin and Fortune Mate
The main advantage of trading using opposite Bank Panin and Fortune Mate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Panin position performs unexpectedly, Fortune Mate 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 Fortune Mate will offset losses from the drop in Fortune Mate's long position.Bank Panin vs. Paninvest Tbk | Bank Panin vs. Maskapai Reasuransi Indonesia | Bank Panin vs. Panin Sekuritas Tbk | Bank Panin vs. Wahana Ottomitra Multiartha |
Fortune Mate vs. Metrodata Electronics Tbk | Fortune Mate vs. Trinitan Metals and | Fortune Mate vs. Weha Transportasi Indonesia | Fortune Mate vs. Pacific Strategic Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |