Correlation Between N Citron and APS Holdings
Can any of the company-specific risk be diversified away by investing in both N Citron and APS Holdings 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 N Citron and APS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Citron and APS Holdings, you can compare the effects of market volatilities on N Citron and APS Holdings 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 N Citron with a short position of APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Citron and APS Holdings.
Diversification Opportunities for N Citron and APS Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 101400 and APS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding N Citron and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings and N Citron 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 N Citron are associated (or correlated) with APS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Holdings has no effect on the direction of N Citron i.e., N Citron and APS Holdings go up and down completely randomly.
Pair Corralation between N Citron and APS Holdings
Assuming the 90 days trading horizon N Citron is expected to under-perform the APS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, N Citron is 1.28 times less risky than APS Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The APS Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 657,000 in APS Holdings on September 1, 2024 and sell it today you would lose (87,000) from holding APS Holdings or give up 13.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
N Citron vs. APS Holdings
Performance |
| Timeline |
| N Citron |
| APS Holdings |
N Citron and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Citron and APS Holdings
The main advantage of trading using opposite N Citron and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Citron position performs unexpectedly, APS Holdings 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 APS Holdings will offset losses from the drop in APS Holdings' long position.| N Citron vs. Tuksu Engineering ConstructionLtd | N Citron vs. Dongwoo Farm To | N Citron vs. Korea Shipbuilding Offshore | N Citron vs. Seohee Construction Co |
| APS Holdings vs. Dgb Financial | APS Holdings vs. LG Electronics Pfd | APS Holdings vs. Jeju Bank | APS Holdings vs. DAEDUCK ELECTRONICS CoLtd |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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