Correlation Between Mekong Fisheries and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries 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 Mekong Fisheries and Asia Pacific 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 Asia Pacific Investment, you can compare the effects of market volatilities on Mekong Fisheries 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 Mekong Fisheries with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Asia Pacific.
Diversification Opportunities for Mekong Fisheries and Asia Pacific
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mekong and Asia is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC 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 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 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 Mekong Fisheries i.e., Mekong Fisheries and Asia Pacific go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Asia Pacific
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to generate 1.43 times more return on investment than Asia Pacific. However, Mekong Fisheries is 1.43 times more volatile than Asia Pacific Investment. It trades about -0.01 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 700,000 in Mekong Fisheries JSC on August 26, 2024 and sell it today you would lose (10,000) from holding Mekong Fisheries JSC or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Asia Pacific Investment
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Asia Pacific Investment |
Mekong Fisheries and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Asia Pacific
The main advantage of trading using opposite Mekong Fisheries and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries 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.| Mekong Fisheries vs. Dinhvu Port Investment | Mekong Fisheries vs. Transimex Transportation JSC | Mekong Fisheries vs. Ha Long Investment | Mekong Fisheries vs. South Basic Chemicals |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |