Correlation Between APG Securities and Development Investment
Can any of the company-specific risk be diversified away by investing in both APG Securities and Development Investment 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 Development Investment 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 Development Investment Construction, you can compare the effects of market volatilities on APG Securities and Development Investment 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 Development Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Development Investment.
Diversification Opportunities for APG Securities and Development Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between APG and Development is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Development Investment Constru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Development Investment 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 Development Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Development Investment has no effect on the direction of APG Securities i.e., APG Securities and Development Investment go up and down completely randomly.
Pair Corralation between APG Securities and Development Investment
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Development Investment. But the stock apears to be less risky and, when comparing its historical volatility, APG Securities Joint is 2.83 times less risky than Development Investment. The stock trades about -0.23 of its potential returns per unit of risk. The Development Investment Construction is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,055,000 in Development Investment Construction on August 31, 2024 and sell it today you would lose (25,000) from holding Development Investment Construction or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
APG Securities Joint vs. Development Investment Constru
Performance |
| Timeline |
| APG Securities Joint |
| Development Investment |
APG Securities and Development Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Development Investment
The main advantage of trading using opposite APG Securities and Development Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Development Investment 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 Development Investment will offset losses from the drop in Development Investment's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Alphanam ME |
| Development Investment vs. FPT Digital Retail | Development Investment vs. Nafoods Group JSC | Development Investment vs. DOMESCO Medical Import | Development Investment vs. PetroVietnam Drilling Well |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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