Correlation Between APG Securities and LDG Investment
Can any of the company-specific risk be diversified away by investing in both APG Securities and LDG Investment 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 LDG Investment 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 LDG Investment JSC, you can compare the effects of market volatilities on APG Securities and LDG Investment 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 LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and LDG Investment.
Diversification Opportunities for APG Securities and LDG Investment
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between APG and LDG is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment JSC 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 LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of APG Securities i.e., APG Securities and LDG Investment go up and down completely randomly.
Pair Corralation between APG Securities and LDG Investment
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the LDG Investment. In addition to that, APG Securities is 2.42 times more volatile than LDG Investment JSC. It trades about -0.03 of its total potential returns per unit of risk. LDG Investment JSC is currently generating about -0.06 per unit of volatility. If you would invest 194,000 in LDG Investment JSC on November 8, 2024 and sell it today you would lose (10,000) from holding LDG Investment JSC or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. LDG Investment JSC
Performance |
| Timeline |
| APG Securities Joint |
| LDG Investment JSC |
APG Securities and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and LDG Investment
The main advantage of trading using opposite APG Securities and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| APG Securities vs. Ducgiang Chemicals Detergent | APG Securities vs. Binh Duong Trade | APG Securities vs. Post and Telecommunications | APG Securities vs. Nam Kim Steel |
| LDG Investment vs. Vincom Retail JSC | LDG Investment vs. Tay Ninh Rubber | LDG Investment vs. Vietnam Dairy Products | LDG Investment vs. Saigon Viendong Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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