Correlation Between APG Securities and Tien Son
Can any of the company-specific risk be diversified away by investing in both APG Securities and Tien Son 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 Tien Son 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 Tien Son Thanh, you can compare the effects of market volatilities on APG Securities and Tien Son 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 Tien Son. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Tien Son.
Diversification Opportunities for APG Securities and Tien Son
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APG and Tien is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Tien Son Thanh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Son Thanh 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 Tien Son. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Son Thanh has no effect on the direction of APG Securities i.e., APG Securities and Tien Son go up and down completely randomly.
Pair Corralation between APG Securities and Tien Son
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 1.35 times more return on investment than Tien Son. However, APG Securities is 1.35 times more volatile than Tien Son Thanh. It trades about 0.04 of its potential returns per unit of risk. Tien Son Thanh is currently generating about -0.03 per unit of risk. If you would invest 666,000 in APG Securities Joint on November 28, 2024 and sell it today you would earn a total of 243,000 from holding APG Securities Joint or generate 36.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
APG Securities Joint vs. Tien Son Thanh
Performance |
| Timeline |
| APG Securities Joint |
| Tien Son Thanh |
APG Securities and Tien Son Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Tien Son
The main advantage of trading using opposite APG Securities and Tien Son positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Tien Son 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 Tien Son will offset losses from the drop in Tien Son's long position.| APG Securities vs. Century Synthetic Fiber | APG Securities vs. PVI Reinsurance Corp | APG Securities vs. Ducgiang Chemicals Detergent | APG Securities vs. Petrolimex Insurance Corp |
| Tien Son vs. Tien Giang Investment | Tien Son vs. Duong Hieu Trading | Tien Son vs. HVC Investment and | Tien Son vs. Ha Long Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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