Correlation Between APG Securities and VietinBank Securities
Can any of the company-specific risk be diversified away by investing in both APG Securities and VietinBank Securities 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 VietinBank Securities 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 VietinBank Securities JSC, you can compare the effects of market volatilities on APG Securities and VietinBank Securities 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 VietinBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and VietinBank Securities.
Diversification Opportunities for APG Securities and VietinBank Securities
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between APG and VietinBank is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and VietinBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VietinBank Securities 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 VietinBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VietinBank Securities JSC has no effect on the direction of APG Securities i.e., APG Securities and VietinBank Securities go up and down completely randomly.
Pair Corralation between APG Securities and VietinBank Securities
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the VietinBank Securities. In addition to that, APG Securities is 1.79 times more volatile than VietinBank Securities JSC. It trades about -0.09 of its total potential returns per unit of risk. VietinBank Securities JSC is currently generating about -0.01 per unit of volatility. If you would invest 3,460,000 in VietinBank Securities JSC on November 3, 2024 and sell it today you would lose (100,000) from holding VietinBank Securities JSC or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. VietinBank Securities JSC
Performance |
| Timeline |
| APG Securities Joint |
| VietinBank Securities JSC |
APG Securities and VietinBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and VietinBank Securities
The main advantage of trading using opposite APG Securities and VietinBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, VietinBank Securities 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 VietinBank Securities will offset losses from the drop in VietinBank Securities' long position.| APG Securities vs. Elcom Technology Communications | APG Securities vs. Post and Telecommunications | APG Securities vs. Hanoi Beer Alcohol | APG Securities vs. Hai An Transport |
| VietinBank Securities vs. Sea Air Freight | VietinBank Securities vs. IDJ FINANCIAL | VietinBank Securities vs. Military Insurance Corp | VietinBank Securities vs. DOMESCO Medical 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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