Correlation Between APG Securities and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both APG Securities and Fecon Mining 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 Fecon Mining 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 Fecon Mining JSC, you can compare the effects of market volatilities on APG Securities and Fecon Mining 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 Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Fecon Mining.
Diversification Opportunities for APG Securities and Fecon Mining
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APG and Fecon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining 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 Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of APG Securities i.e., APG Securities and Fecon Mining go up and down completely randomly.
Pair Corralation between APG Securities and Fecon Mining
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 1.87 times more return on investment than Fecon Mining. However, APG Securities is 1.87 times more volatile than Fecon Mining JSC. It trades about 0.08 of its potential returns per unit of risk. Fecon Mining JSC is currently generating about -0.14 per unit of risk. If you would invest 669,000 in APG Securities Joint on November 3, 2024 and sell it today you would earn a total of 31,000 from holding APG Securities Joint or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Fecon Mining JSC
Performance |
| Timeline |
| APG Securities Joint |
| Fecon Mining JSC |
APG Securities and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Fecon Mining
The main advantage of trading using opposite APG Securities and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| APG Securities vs. Danang Rubber JSC | APG Securities vs. Fecon Mining JSC | APG Securities vs. Ben Thanh Rubber | APG Securities vs. Binh Minh Plastics |
| Fecon Mining vs. Plastic Additives JSC | Fecon Mining vs. Innovative Technology Development | Fecon Mining vs. Picomat Plastic JSC | Fecon Mining vs. Saigon Telecommunication Technologies |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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