Correlation Between APEX International and Launch Technologies
Can any of the company-specific risk be diversified away by investing in both APEX International and Launch Technologies 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 APEX International and Launch Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APEX International Financial and Launch Technologies Co, you can compare the effects of market volatilities on APEX International and Launch Technologies 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 APEX International with a short position of Launch Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of APEX International and Launch Technologies.
Diversification Opportunities for APEX International and Launch Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APEX and Launch is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding APEX International Financial and Launch Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Launch Technologies and APEX International 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 APEX International Financial are associated (or correlated) with Launch Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Launch Technologies has no effect on the direction of APEX International i.e., APEX International and Launch Technologies go up and down completely randomly.
Pair Corralation between APEX International and Launch Technologies
Assuming the 90 days trading horizon APEX International Financial is expected to under-perform the Launch Technologies. In addition to that, APEX International is 3.64 times more volatile than Launch Technologies Co. It trades about -0.13 of its total potential returns per unit of risk. Launch Technologies Co is currently generating about -0.16 per unit of volatility. If you would invest 4,180 in Launch Technologies Co on September 13, 2024 and sell it today you would lose (120.00) from holding Launch Technologies Co or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.4% |
| Values | Daily Returns |
APEX International Financial vs. Launch Technologies Co
Performance |
| Timeline |
| APEX International |
| Launch Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
APEX International and Launch Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APEX International and Launch Technologies
The main advantage of trading using opposite APEX International and Launch Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APEX International position performs unexpectedly, Launch Technologies 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 Launch Technologies will offset losses from the drop in Launch Technologies' long position.| APEX International vs. Mitake Information | APEX International vs. K Way Information | APEX International vs. YuantaP shares Taiwan Electronics | APEX International vs. YuantaP shares Taiwan Top |
| Launch Technologies vs. Shinkong Insurance Co | Launch Technologies vs. Hua Nan Financial | Launch Technologies vs. APEX International Financial | Launch Technologies vs. Yuanta Financial Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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