Correlation Between APG Securities and Phuoc Hoa
Can any of the company-specific risk be diversified away by investing in both APG Securities and Phuoc Hoa 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 Phuoc Hoa 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 Phuoc Hoa Rubber, you can compare the effects of market volatilities on APG Securities and Phuoc Hoa 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 Phuoc Hoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Phuoc Hoa.
Diversification Opportunities for APG Securities and Phuoc Hoa
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APG and Phuoc is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Phuoc Hoa Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phuoc Hoa Rubber 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 Phuoc Hoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phuoc Hoa Rubber has no effect on the direction of APG Securities i.e., APG Securities and Phuoc Hoa go up and down completely randomly.
Pair Corralation between APG Securities and Phuoc Hoa
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 0.68 times more return on investment than Phuoc Hoa. However, APG Securities Joint is 1.48 times less risky than Phuoc Hoa. It trades about -0.01 of its potential returns per unit of risk. Phuoc Hoa Rubber is currently generating about -0.01 per unit of risk. If you would invest 920,000 in APG Securities Joint on August 24, 2024 and sell it today you would lose (3,000) from holding APG Securities Joint or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Phuoc Hoa Rubber
Performance |
| Timeline |
| APG Securities Joint |
| Phuoc Hoa Rubber |
APG Securities and Phuoc Hoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Phuoc Hoa
The main advantage of trading using opposite APG Securities and Phuoc Hoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Phuoc Hoa 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 Phuoc Hoa will offset losses from the drop in Phuoc Hoa's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Binhthuan Agriculture Services |
| Phuoc Hoa vs. FIT INVEST JSC | Phuoc Hoa vs. Damsan JSC | Phuoc Hoa vs. An Phat Plastic | Phuoc Hoa vs. APG Securities Joint |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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