Correlation Between APG Securities and Ducgiang Chemicals
Can any of the company-specific risk be diversified away by investing in both APG Securities and Ducgiang Chemicals 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 Ducgiang Chemicals 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 Ducgiang Chemicals Detergent, you can compare the effects of market volatilities on APG Securities and Ducgiang Chemicals 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 Ducgiang Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Ducgiang Chemicals.
Diversification Opportunities for APG Securities and Ducgiang Chemicals
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APG and Ducgiang is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Ducgiang Chemicals Detergent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ducgiang Chemicals 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 Ducgiang Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ducgiang Chemicals has no effect on the direction of APG Securities i.e., APG Securities and Ducgiang Chemicals go up and down completely randomly.
Pair Corralation between APG Securities and Ducgiang Chemicals
Assuming the 90 days trading horizon APG Securities is expected to generate 1.25 times less return on investment than Ducgiang Chemicals. In addition to that, APG Securities is 1.29 times more volatile than Ducgiang Chemicals Detergent. It trades about 0.04 of its total potential returns per unit of risk. Ducgiang Chemicals Detergent is currently generating about 0.07 per unit of volatility. If you would invest 4,692,607 in Ducgiang Chemicals Detergent on January 17, 2025 and sell it today you would earn a total of 4,027,393 from holding Ducgiang Chemicals Detergent or generate 85.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Ducgiang Chemicals Detergent
Performance |
| Timeline |
| APG Securities Joint |
| Ducgiang Chemicals |
APG Securities and Ducgiang Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Ducgiang Chemicals
The main advantage of trading using opposite APG Securities and Ducgiang Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Ducgiang Chemicals 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 Ducgiang Chemicals will offset losses from the drop in Ducgiang Chemicals' long position.| APG Securities vs. BaoMinh Insurance Corp | APG Securities vs. TDG Global Investment | APG Securities vs. Tien Giang Investment | APG Securities vs. Long Giang Investment |
| Ducgiang Chemicals vs. 1369 Construction JSC | Ducgiang Chemicals vs. Mechanics Construction and | Ducgiang Chemicals vs. Fecon Mining JSC | Ducgiang Chemicals vs. Telecoms Informatics JSC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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