Correlation Between APG Securities and Hoa Phat
Can any of the company-specific risk be diversified away by investing in both APG Securities and Hoa Phat 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 Hoa Phat 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 Hoa Phat Group, you can compare the effects of market volatilities on APG Securities and Hoa Phat 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 Hoa Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Hoa Phat.
Diversification Opportunities for APG Securities and Hoa Phat
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APG and Hoa is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Hoa Phat Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoa Phat 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 Hoa Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoa Phat Group has no effect on the direction of APG Securities i.e., APG Securities and Hoa Phat go up and down completely randomly.
Pair Corralation between APG Securities and Hoa Phat
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Hoa Phat. In addition to that, APG Securities is 1.97 times more volatile than Hoa Phat Group. It trades about -0.15 of its total potential returns per unit of risk. Hoa Phat Group is currently generating about 0.04 per unit of volatility. If you would invest 2,525,000 in Hoa Phat Group on November 2, 2024 and sell it today you would earn a total of 130,000 from holding Hoa Phat Group or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Hoa Phat Group
Performance |
| Timeline |
| APG Securities Joint |
| Hoa Phat Group |
APG Securities and Hoa Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Hoa Phat
The main advantage of trading using opposite APG Securities and Hoa Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Hoa Phat 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 Hoa Phat will offset losses from the drop in Hoa Phat's long position.| APG Securities vs. TDT Investment and | APG Securities vs. Ba Ria Thermal | APG Securities vs. Petrolimex International Trading | APG Securities vs. Tng Investment And |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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