Correlation Between APG Securities and Innovative Technology
Can any of the company-specific risk be diversified away by investing in both APG Securities and Innovative Technology 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 Innovative Technology 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 Innovative Technology Development, you can compare the effects of market volatilities on APG Securities and Innovative Technology 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 Innovative Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Innovative Technology.
Diversification Opportunities for APG Securities and Innovative Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APG and Innovative is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Innovative Technology Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Technology 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 Innovative Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Technology has no effect on the direction of APG Securities i.e., APG Securities and Innovative Technology go up and down completely randomly.
Pair Corralation between APG Securities and Innovative Technology
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 0.21 times more return on investment than Innovative Technology. However, APG Securities Joint is 4.82 times less risky than Innovative Technology. It trades about -0.22 of its potential returns per unit of risk. Innovative Technology Development is currently generating about -0.07 per unit of risk. If you would invest 920,000 in APG Securities Joint on September 1, 2024 and sell it today you would lose (21,000) from holding APG Securities Joint or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Innovative Technology Developm
Performance |
| Timeline |
| APG Securities Joint |
| Innovative Technology |
APG Securities and Innovative Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Innovative Technology
The main advantage of trading using opposite APG Securities and Innovative Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Innovative Technology 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 Innovative Technology will offset losses from the drop in Innovative Technology's long position.| APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Alphanam ME | APG Securities vs. Binhthuan Agriculture Services |
| Innovative Technology vs. FIT INVEST JSC | Innovative Technology vs. Damsan JSC | Innovative Technology vs. An Phat Plastic | Innovative Technology vs. Alphanam ME |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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