Correlation Between PH Tech and APS Holdings
Can any of the company-specific risk be diversified away by investing in both PH Tech 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 PH Tech and APS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and APS Holdings, you can compare the effects of market volatilities on PH Tech 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 PH Tech with a short position of APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and APS Holdings.
Diversification Opportunities for PH Tech and APS Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 239890 and APS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings and PH Tech 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 PH Tech Co 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 PH Tech i.e., PH Tech and APS Holdings go up and down completely randomly.
Pair Corralation between PH Tech and APS Holdings
Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the APS Holdings. In addition to that, PH Tech is 1.11 times more volatile than APS Holdings. It trades about -0.12 of its total potential returns per unit of risk. APS Holdings is currently generating about 0.0 per unit of volatility. If you would invest 620,000 in APS Holdings on September 4, 2024 and sell it today you would lose (59,000) from holding APS Holdings or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. APS Holdings
Performance |
| Timeline |
| PH Tech |
| APS Holdings |
PH Tech and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and APS Holdings
The main advantage of trading using opposite PH Tech and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech 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.| PH Tech vs. LG Chem | PH Tech vs. DukSan Neolux CoLtd | PH Tech vs. Hyosung Chemical Corp | PH Tech vs. LIG ES SPAC |
| APS Holdings vs. Shinsegae Information Communication | APS Holdings vs. DC Media Co | APS Holdings vs. SM Entertainment Co | APS Holdings vs. Barunson Entertainment Arts |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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