Correlation Between Mekong Fisheries and APG Securities
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries 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 Mekong Fisheries and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekong Fisheries JSC and APG Securities Joint, you can compare the effects of market volatilities on Mekong Fisheries 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 Mekong Fisheries with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and APG Securities.
Diversification Opportunities for Mekong Fisheries and APG Securities
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mekong and APG is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC 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 Mekong Fisheries 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 Mekong Fisheries JSC 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 Mekong Fisheries i.e., Mekong Fisheries and APG Securities go up and down completely randomly.
Pair Corralation between Mekong Fisheries and APG Securities
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to generate 3.17 times more return on investment than APG Securities. However, Mekong Fisheries is 3.17 times more volatile than APG Securities Joint. It trades about 0.01 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.01 per unit of risk. If you would invest 700,000 in Mekong Fisheries JSC on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Mekong Fisheries JSC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. APG Securities Joint
Performance |
| Timeline |
| Mekong Fisheries JSC |
| APG Securities Joint |
Mekong Fisheries and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and APG Securities
The main advantage of trading using opposite Mekong Fisheries and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries 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.| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. APG Securities Joint |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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