Correlation Between An Phat and APG Securities
Can any of the company-specific risk be diversified away by investing in both An Phat and APG Securities 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 An Phat and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and APG Securities Joint, you can compare the effects of market volatilities on An Phat and APG Securities 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 An Phat with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and APG Securities.
Diversification Opportunities for An Phat and APG Securities
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AAA and APG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and APG Securities Joint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APG Securities Joint and An Phat 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 An Phat Plastic are associated (or correlated) with APG Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APG Securities Joint has no effect on the direction of An Phat i.e., An Phat and APG Securities go up and down completely randomly.
Pair Corralation between An Phat and APG Securities
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the APG Securities. In addition to that, An Phat is 1.78 times more volatile than APG Securities Joint. It trades about -0.21 of its total potential returns per unit of risk. APG Securities Joint is currently generating about -0.01 per unit of volatility. If you would invest 920,000 in APG Securities Joint on August 24, 2024 and sell it today you would lose (3,000) from holding APG Securities Joint or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
An Phat Plastic vs. APG Securities Joint
Performance |
| Timeline |
| An Phat Plastic |
| APG Securities Joint |
An Phat and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and APG Securities
The main advantage of trading using opposite An Phat and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, APG Securities 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 APG Securities will offset losses from the drop in APG Securities' long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Binhthuan Agriculture Services |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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