Correlation Between APG Securities and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both APG Securities and Mekong Fisheries 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 APG Securities and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APG Securities Joint and Mekong Fisheries JSC, you can compare the effects of market volatilities on APG Securities and Mekong Fisheries 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 APG Securities with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Mekong Fisheries.
Diversification Opportunities for APG Securities and Mekong Fisheries
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APG and Mekong is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and APG Securities 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 APG Securities Joint are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of APG Securities i.e., APG Securities and Mekong Fisheries go up and down completely randomly.
Pair Corralation between APG Securities and Mekong Fisheries
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Mekong Fisheries. But the stock apears to be less risky and, when comparing its historical volatility, APG Securities Joint is 7.79 times less risky than Mekong Fisheries. The stock trades about -0.12 of its potential returns per unit of risk. The Mekong Fisheries JSC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 701,000 in Mekong Fisheries JSC on August 27, 2024 and sell it today you would lose (1,000.00) from holding Mekong Fisheries JSC or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Mekong Fisheries JSC
Performance |
| Timeline |
| APG Securities Joint |
| Mekong Fisheries JSC |
APG Securities and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Mekong Fisheries
The main advantage of trading using opposite APG Securities and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Binhthuan Agriculture Services |
| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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