Correlation Between APG Securities and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both APG Securities and Hanoi Beer 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 Hanoi Beer 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 Hanoi Beer Alcohol, you can compare the effects of market volatilities on APG Securities and Hanoi Beer 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 Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Hanoi Beer.
Diversification Opportunities for APG Securities and Hanoi Beer
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APG and Hanoi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol 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 Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of APG Securities i.e., APG Securities and Hanoi Beer go up and down completely randomly.
Pair Corralation between APG Securities and Hanoi Beer
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 1.87 times more return on investment than Hanoi Beer. However, APG Securities is 1.87 times more volatile than Hanoi Beer Alcohol. It trades about 0.03 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.01 per unit of risk. If you would invest 608,000 in APG Securities Joint on October 12, 2024 and sell it today you would earn a total of 106,000 from holding APG Securities Joint or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.1% |
| Values | Daily Returns |
APG Securities Joint vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| APG Securities Joint |
| Hanoi Beer Alcohol |
APG Securities and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Hanoi Beer
The main advantage of trading using opposite APG Securities and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| APG Securities vs. Nafoods Group JSC | APG Securities vs. Elcom Technology Communications | APG Securities vs. PetroVietnam Drilling Well | APG Securities vs. Industrial Urban Development |
| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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