Correlation Between APG Securities and KSD
Can any of the company-specific risk be diversified away by investing in both APG Securities and KSD 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 KSD 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 KSD, you can compare the effects of market volatilities on APG Securities and KSD 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 KSD. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and KSD.
Diversification Opportunities for APG Securities and KSD
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APG and KSD is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and KSD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSD 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 KSD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSD has no effect on the direction of APG Securities i.e., APG Securities and KSD go up and down completely randomly.
Pair Corralation between APG Securities and KSD
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 0.87 times more return on investment than KSD. However, APG Securities Joint is 1.15 times less risky than KSD. It trades about 0.04 of its potential returns per unit of risk. KSD is currently generating about 0.01 per unit of risk. If you would invest 603,000 in APG Securities Joint on September 4, 2024 and sell it today you would earn a total of 301,000 from holding APG Securities Joint or generate 49.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.21% |
| Values | Daily Returns |
APG Securities Joint vs. KSD
Performance |
| Timeline |
| APG Securities Joint |
| KSD |
APG Securities and KSD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and KSD
The main advantage of trading using opposite APG Securities and KSD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, KSD 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 KSD will offset losses from the drop in KSD's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Alphanam ME |
| KSD vs. Duong Hieu Trading | KSD vs. Ha Long Investment | KSD vs. Dinhvu Port Investment | KSD vs. Vina2 Investment and |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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