Correlation Between APS Holdings and ICD
Can any of the company-specific risk be diversified away by investing in both APS Holdings and ICD 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 APS Holdings and ICD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APS Holdings and ICD Co, you can compare the effects of market volatilities on APS Holdings and ICD 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 APS Holdings with a short position of ICD. Check out your portfolio center. Please also check ongoing floating volatility patterns of APS Holdings and ICD.
Diversification Opportunities for APS Holdings and ICD
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APS and ICD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding APS Holdings and ICD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICD Co and APS Holdings 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 APS Holdings are associated (or correlated) with ICD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICD Co has no effect on the direction of APS Holdings i.e., APS Holdings and ICD go up and down completely randomly.
Pair Corralation between APS Holdings and ICD
Assuming the 90 days trading horizon APS Holdings is expected to generate 0.97 times more return on investment than ICD. However, APS Holdings is 1.03 times less risky than ICD. It trades about -0.01 of its potential returns per unit of risk. ICD Co is currently generating about -0.04 per unit of risk. If you would invest 662,000 in APS Holdings on September 1, 2024 and sell it today you would lose (92,000) from holding APS Holdings or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
APS Holdings vs. ICD Co
Performance |
| Timeline |
| APS Holdings |
| ICD Co |
APS Holdings and ICD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APS Holdings and ICD
The main advantage of trading using opposite APS Holdings and ICD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APS Holdings position performs unexpectedly, ICD 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 ICD will offset losses from the drop in ICD's long position.| APS Holdings vs. Dgb Financial | APS Holdings vs. LG Electronics Pfd | APS Holdings vs. Jeju Bank | APS Holdings vs. DAEDUCK ELECTRONICS CoLtd |
| ICD vs. Samsung Electronics Co | ICD vs. Samsung Electronics Co | ICD vs. LG Energy Solution | ICD vs. SK Hynix |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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