Correlation Between APG Securities and Vietnam Rubber
Can any of the company-specific risk be diversified away by investing in both APG Securities and Vietnam Rubber 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 Vietnam Rubber 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 Vietnam Rubber Group, you can compare the effects of market volatilities on APG Securities and Vietnam Rubber 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 Vietnam Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Vietnam Rubber.
Diversification Opportunities for APG Securities and Vietnam Rubber
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between APG and Vietnam is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Vietnam Rubber Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Rubber Group 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 Vietnam Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Rubber Group has no effect on the direction of APG Securities i.e., APG Securities and Vietnam Rubber go up and down completely randomly.
Pair Corralation between APG Securities and Vietnam Rubber
Assuming the 90 days trading horizon APG Securities is expected to generate 3.16 times less return on investment than Vietnam Rubber. In addition to that, APG Securities is 1.07 times more volatile than Vietnam Rubber Group. It trades about 0.02 of its total potential returns per unit of risk. Vietnam Rubber Group is currently generating about 0.07 per unit of volatility. If you would invest 1,376,795 in Vietnam Rubber Group on November 5, 2024 and sell it today you would earn a total of 1,503,205 from holding Vietnam Rubber Group or generate 109.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Vietnam Rubber Group
Performance |
| Timeline |
| APG Securities Joint |
| Vietnam Rubber Group |
APG Securities and Vietnam Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Vietnam Rubber
The main advantage of trading using opposite APG Securities and Vietnam Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Vietnam Rubber 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 Vietnam Rubber will offset losses from the drop in Vietnam Rubber's long position.| APG Securities vs. Binh Duong Construction | APG Securities vs. Sea Air Freight | APG Securities vs. Binhthuan Agriculture Services | APG Securities vs. Tng Investment And |
| Vietnam Rubber vs. Dinhvu Port Investment | Vietnam Rubber vs. 1369 Construction JSC | Vietnam Rubber vs. Construction And Investment | Vietnam Rubber vs. MST Investment 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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