Correlation Between APG Securities and Camau Trading
Can any of the company-specific risk be diversified away by investing in both APG Securities and Camau Trading 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 Camau Trading 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 Camau Trading JSC, you can compare the effects of market volatilities on APG Securities and Camau Trading 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 Camau Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Camau Trading.
Diversification Opportunities for APG Securities and Camau Trading
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APG and Camau is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Camau Trading JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camau Trading 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 Camau Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camau Trading JSC has no effect on the direction of APG Securities i.e., APG Securities and Camau Trading go up and down completely randomly.
Pair Corralation between APG Securities and Camau Trading
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 1.24 times more return on investment than Camau Trading. However, APG Securities is 1.24 times more volatile than Camau Trading JSC. It trades about -0.12 of its potential returns per unit of risk. Camau Trading JSC is currently generating about -0.23 per unit of risk. If you would invest 820,000 in APG Securities Joint on October 24, 2024 and sell it today you would lose (114,000) from holding APG Securities Joint or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
APG Securities Joint vs. Camau Trading JSC
Performance |
| Timeline |
| APG Securities Joint |
| Camau Trading JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
APG Securities and Camau Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Camau Trading
The main advantage of trading using opposite APG Securities and Camau Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Camau Trading 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 Camau Trading will offset losses from the drop in Camau Trading's long position.| APG Securities vs. Century Synthetic Fiber | APG Securities vs. Ducgiang Chemicals Detergent | APG Securities vs. Pha Lai Thermal | APG Securities vs. Transimex Transportation JSC |
| Camau Trading vs. FIT INVEST JSC | Camau Trading vs. Damsan JSC | Camau Trading vs. An Phat Plastic | Camau Trading 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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