Correlation Between AP Public and Siamese Asset
Can any of the company-specific risk be diversified away by investing in both AP Public and Siamese Asset 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 Siamese Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Siamese Asset Public, you can compare the effects of market volatilities on AP Public and Siamese Asset 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 Siamese Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Siamese Asset.
Diversification Opportunities for AP Public and Siamese Asset
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AP Public and Siamese is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Siamese Asset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamese Asset 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 Siamese Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamese Asset Public has no effect on the direction of AP Public i.e., AP Public and Siamese Asset go up and down completely randomly.
Pair Corralation between AP Public and Siamese Asset
Assuming the 90 days horizon AP Public is expected to generate 2.37 times more return on investment than Siamese Asset. However, AP Public is 2.37 times more volatile than Siamese Asset Public. It trades about -0.01 of its potential returns per unit of risk. Siamese Asset Public is currently generating about -0.07 per unit of risk. If you would invest 900.00 in AP Public on August 30, 2024 and sell it today you would lose (30.00) from holding AP Public or give up 3.33% 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. Siamese Asset Public
Performance |
| Timeline |
| AP Public |
| Siamese Asset Public |
AP Public and Siamese Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Siamese Asset
The main advantage of trading using opposite AP Public and Siamese Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Siamese Asset 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 Siamese Asset will offset losses from the drop in Siamese Asset's long position.| AP Public vs. Eastern Star Real | AP Public vs. Ananda Development Public | AP Public vs. Better World Green | AP Public vs. Dcon Products Public |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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