Correlation Between APG Securities and Song Hong
Can any of the company-specific risk be diversified away by investing in both APG Securities and Song Hong 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 Song Hong 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 Song Hong Construction, you can compare the effects of market volatilities on APG Securities and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Song Hong.
Diversification Opportunities for APG Securities and Song Hong
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between APG and Song is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Song Hong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Construction 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Construction has no effect on the direction of APG Securities i.e., APG Securities and Song Hong go up and down completely randomly.
Pair Corralation between APG Securities and Song Hong
Assuming the 90 days trading horizon APG Securities is expected to generate 1.06 times less return on investment than Song Hong. In addition to that, APG Securities is 1.06 times more volatile than Song Hong Construction. It trades about 0.03 of its total potential returns per unit of risk. Song Hong Construction is currently generating about 0.03 per unit of volatility. If you would invest 579,211 in Song Hong Construction on August 27, 2024 and sell it today you would earn a total of 110,789 from holding Song Hong Construction or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.29% |
| Values | Daily Returns |
APG Securities Joint vs. Song Hong Construction
Performance |
| Timeline |
| APG Securities Joint |
| Song Hong Construction |
APG Securities and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Song Hong
The main advantage of trading using opposite APG Securities and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Binhthuan Agriculture Services |
| Song Hong vs. Petrolimex International Trading | Song Hong vs. Dinhvu Port Investment | Song Hong vs. Duong Hieu Trading | Song Hong vs. POST TELECOMMU |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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