Correlation Between AP Public and Union Auction
Can any of the company-specific risk be diversified away by investing in both AP Public and Union Auction 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 AP Public and Union Auction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Union Auction Public, you can compare the effects of market volatilities on AP Public and Union Auction 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 AP Public with a short position of Union Auction. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Union Auction.
Diversification Opportunities for AP Public and Union Auction
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between AP Public and Union is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Union Auction Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Auction Public and AP Public 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 AP Public are associated (or correlated) with Union Auction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Auction Public has no effect on the direction of AP Public i.e., AP Public and Union Auction go up and down completely randomly.
Pair Corralation between AP Public and Union Auction
Assuming the 90 days horizon AP Public is expected to generate 28.2 times less return on investment than Union Auction. But when comparing it to its historical volatility, AP Public is 1.33 times less risky than Union Auction. It trades about 0.0 of its potential returns per unit of risk. Union Auction Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Union Auction Public on August 25, 2024 and sell it today you would lose (37.00) from holding Union Auction Public or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Union Auction Public
Performance |
| Timeline |
| AP Public |
| Union Auction Public |
AP Public and Union Auction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Union Auction
The main advantage of trading using opposite AP Public and Union Auction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Union Auction 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 Union Auction will offset losses from the drop in Union Auction's long position.| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
| Union Auction vs. AP Public | Union Auction vs. Carabao Group Public | Union Auction vs. Forth Smart Service | Union Auction vs. Com7 PCL |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |