Correlation Between An Phat and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both An Phat and Asia Pacific 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 Asia Pacific 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 Asia Pacific Investment, you can compare the effects of market volatilities on An Phat and Asia Pacific 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 Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Asia Pacific.
Diversification Opportunities for An Phat and Asia Pacific
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAA and Asia is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Asia Pacific Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investment 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 Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investment has no effect on the direction of An Phat i.e., An Phat and Asia Pacific go up and down completely randomly.
Pair Corralation between An Phat and Asia Pacific
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.52 times more return on investment than Asia Pacific. However, An Phat Plastic is 1.94 times less risky than Asia Pacific. It trades about -0.29 of its potential returns per unit of risk. Asia Pacific Investment is currently generating about -0.16 per unit of risk. If you would invest 1,000,000 in An Phat Plastic on August 25, 2024 and sell it today you would lose (164,000) from holding An Phat Plastic or give up 16.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.78% |
| Values | Daily Returns |
An Phat Plastic vs. Asia Pacific Investment
Performance |
| Timeline |
| An Phat Plastic |
| Asia Pacific Investment |
An Phat and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Asia Pacific
The main advantage of trading using opposite An Phat and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| An Phat vs. South Basic Chemicals | An Phat vs. Saigon Beer Alcohol | An Phat vs. Vietnam Petroleum Transport | An Phat vs. Fecon Mining JSC |
| Asia Pacific vs. FIT INVEST JSC | Asia Pacific vs. Damsan JSC | Asia Pacific vs. An Phat Plastic | Asia Pacific vs. APG Securities Joint |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |