Correlation Between APG Securities and Long An
Can any of the company-specific risk be diversified away by investing in both APG Securities and Long An 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 Long An 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 Long An Food, you can compare the effects of market volatilities on APG Securities and Long An 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 Long An. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Long An.
Diversification Opportunities for APG Securities and Long An
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APG and Long is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Long An Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long An Food 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 Long An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long An Food has no effect on the direction of APG Securities i.e., APG Securities and Long An go up and down completely randomly.
Pair Corralation between APG Securities and Long An
Assuming the 90 days trading horizon APG Securities is expected to generate 1.53 times less return on investment than Long An. In addition to that, APG Securities is 1.55 times more volatile than Long An Food. It trades about 0.12 of its total potential returns per unit of risk. Long An Food is currently generating about 0.28 per unit of volatility. If you would invest 1,820,000 in Long An Food on November 4, 2024 and sell it today you would earn a total of 205,000 from holding Long An Food or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
APG Securities Joint vs. Long An Food
Performance |
| Timeline |
| APG Securities Joint |
| Long An Food |
APG Securities and Long An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Long An
The main advantage of trading using opposite APG Securities and Long An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Long An 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 Long An will offset losses from the drop in Long An's long position.| APG Securities vs. Vu Dang Investment | APG Securities vs. Binh Duong Construction | APG Securities vs. Ha Noi Education | APG Securities vs. Fecon Mining JSC |
| Long An vs. Bao Ngoc Investment | Long An vs. SMC Investment Trading | Long An vs. Military Insurance Corp | Long An vs. Vu Dang Investment |
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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