Correlation Between AP Public and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both AP Public and Polyplex 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 Polyplex 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 Polyplex Public, you can compare the effects of market volatilities on AP Public and Polyplex 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 Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Polyplex Public.
Diversification Opportunities for AP Public and Polyplex Public
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AP Public and Polyplex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex 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 Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of AP Public i.e., AP Public and Polyplex Public go up and down completely randomly.
Pair Corralation between AP Public and Polyplex Public
Assuming the 90 days horizon AP Public is expected to generate 0.6 times more return on investment than Polyplex Public. However, AP Public is 1.66 times less risky than Polyplex Public. It trades about -0.01 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.03 per unit of risk. If you would invest 967.00 in AP Public on September 3, 2024 and sell it today you would lose (97.00) from holding AP Public or give up 10.03% 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. Polyplex Public
Performance |
| Timeline |
| AP Public |
| Polyplex Public |
AP Public and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Polyplex Public
The main advantage of trading using opposite AP Public and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Polyplex 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 Polyplex Public will offset losses from the drop in Polyplex Public'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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