Correlation Between APG Securities and Tien Phong
Can any of the company-specific risk be diversified away by investing in both APG Securities and Tien Phong 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 Tien Phong 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 Tien Phong Plastic, you can compare the effects of market volatilities on APG Securities and Tien Phong 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 Tien Phong. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Tien Phong.
Diversification Opportunities for APG Securities and Tien Phong
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between APG and Tien is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Tien Phong Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Phong Plastic 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 Tien Phong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Phong Plastic has no effect on the direction of APG Securities i.e., APG Securities and Tien Phong go up and down completely randomly.
Pair Corralation between APG Securities and Tien Phong
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Tien Phong. But the stock apears to be less risky and, when comparing its historical volatility, APG Securities Joint is 4.75 times less risky than Tien Phong. The stock trades about -0.21 of its potential returns per unit of risk. The Tien Phong Plastic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,820,000 in Tien Phong Plastic on August 29, 2024 and sell it today you would earn a total of 10,000 from holding Tien Phong Plastic or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Tien Phong Plastic
Performance |
| Timeline |
| APG Securities Joint |
| Tien Phong Plastic |
APG Securities and Tien Phong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Tien Phong
The main advantage of trading using opposite APG Securities and Tien Phong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Tien Phong 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 Tien Phong will offset losses from the drop in Tien Phong's long position.| APG Securities vs. 577 Investment Corp | APG Securities vs. Petrolimex Insurance Corp | APG Securities vs. Vina2 Investment and | APG Securities vs. Thanh Dat Investment |
| Tien Phong vs. Saigon Telecommunication Technologies | Tien Phong vs. Ben Thanh Rubber | Tien Phong vs. Vietnam Rubber Group | Tien Phong vs. Pha Le Plastics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |