Correlation Between AP Public and Humanica Public
Can any of the company-specific risk be diversified away by investing in both AP Public and Humanica Public 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 Humanica Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Humanica Public, you can compare the effects of market volatilities on AP Public and Humanica Public 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 Humanica Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Humanica Public.
Diversification Opportunities for AP Public and Humanica Public
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AP Public and Humanica is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Humanica Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanica 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 Humanica Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanica Public has no effect on the direction of AP Public i.e., AP Public and Humanica Public go up and down completely randomly.
Pair Corralation between AP Public and Humanica Public
Assuming the 90 days horizon AP Public is expected to under-perform the Humanica Public. But the stock apears to be less risky and, when comparing its historical volatility, AP Public is 1.39 times less risky than Humanica Public. The stock trades about -0.03 of its potential returns per unit of risk. The Humanica Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 964.00 in Humanica Public on August 31, 2024 and sell it today you would lose (59.00) from holding Humanica Public or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Humanica Public
Performance |
| Timeline |
| AP Public |
| Humanica Public |
AP Public and Humanica Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Humanica Public
The main advantage of trading using opposite AP Public and Humanica Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Humanica Public 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 Humanica Public will offset losses from the drop in Humanica Public's long position.| AP Public vs. Land and Houses | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office | AP Public vs. Charoen Pokphand Foods |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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