Correlation Between APG Securities and Kien Giang
Can any of the company-specific risk be diversified away by investing in both APG Securities and Kien Giang 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 Kien Giang 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 Kien Giang Construction, you can compare the effects of market volatilities on APG Securities and Kien Giang 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 Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Kien Giang.
Diversification Opportunities for APG Securities and Kien Giang
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APG and Kien is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction 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 Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of APG Securities i.e., APG Securities and Kien Giang go up and down completely randomly.
Pair Corralation between APG Securities and Kien Giang
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 2.06 times more return on investment than Kien Giang. However, APG Securities is 2.06 times more volatile than Kien Giang Construction. It trades about 0.25 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.48 per unit of risk. If you would invest 608,000 in APG Securities Joint on November 7, 2024 and sell it today you would earn a total of 92,000 from holding APG Securities Joint or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
APG Securities Joint vs. Kien Giang Construction
Performance |
| Timeline |
| APG Securities Joint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kien Giang Construction |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
APG Securities and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Kien Giang
The main advantage of trading using opposite APG Securities and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| APG Securities vs. Elcom Technology Communications | APG Securities vs. Innovative Technology Development | APG Securities vs. Hai An Transport | APG Securities vs. Transport and Industry |
| Kien Giang vs. Damsan JSC | Kien Giang vs. Binhthuan Agriculture Services | Kien Giang vs. Bentre Aquaproduct Import |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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