Correlation Between Panin Financial and Trinitan Metals

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

Diversification Opportunities for Panin Financial and Trinitan Metals

0.0

Correlation Coefficient

Panin Financial  Trinitan Metals

Pay attention - limited upside

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

Pair Corralation between Panin Financial and Trinitan Metals

If you would invest  26,800  in Panin Financial Tbk on September 19, 2024 and sell it today you would earn a total of  16,000  from holding Panin Financial Tbk or generate 59.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.64%
Values	Daily Returns

Panin Financial Tbk  vs.  Trinitan Metals and

Panin Financial Tbk

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Panin Financial Tbk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

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.

Pair Trading with Panin Financial and Trinitan Metals

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

The idea behind Panin Financial Tbk and Trinitan Metals and 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.