Correlation Between APG Securities and Nafoods Group
Can any of the company-specific risk be diversified away by investing in both APG Securities and Nafoods Group 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 Nafoods Group 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 Nafoods Group JSC, you can compare the effects of market volatilities on APG Securities and Nafoods Group 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 Nafoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Nafoods Group.
Diversification Opportunities for APG Securities and Nafoods Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APG and Nafoods is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Nafoods Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafoods Group 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 Nafoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafoods Group JSC has no effect on the direction of APG Securities i.e., APG Securities and Nafoods Group go up and down completely randomly.
Pair Corralation between APG Securities and Nafoods Group
Assuming the 90 days trading horizon APG Securities is expected to generate 1.52 times less return on investment than Nafoods Group. In addition to that, APG Securities is 1.28 times more volatile than Nafoods Group JSC. It trades about 0.05 of its total potential returns per unit of risk. Nafoods Group JSC is currently generating about 0.1 per unit of volatility. If you would invest 809,091 in Nafoods Group JSC on August 29, 2024 and sell it today you would earn a total of 1,210,909 from holding Nafoods Group JSC or generate 149.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Nafoods Group JSC
Performance |
| Timeline |
| APG Securities Joint |
| Nafoods Group JSC |
APG Securities and Nafoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Nafoods Group
The main advantage of trading using opposite APG Securities and Nafoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Nafoods Group 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 Nafoods Group will offset losses from the drop in Nafoods Group'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 |
| Nafoods Group vs. FIT INVEST JSC | Nafoods Group vs. Damsan JSC | Nafoods Group vs. An Phat Plastic | Nafoods Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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