Correlation Between APG Securities and Pha Le
Can any of the company-specific risk be diversified away by investing in both APG Securities and Pha Le 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 Pha Le 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 Pha Le Plastics, you can compare the effects of market volatilities on APG Securities and Pha Le 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 Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Pha Le.
Diversification Opportunities for APG Securities and Pha Le
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APG and Pha is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Pha Le Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Le Plastics 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 Pha Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Le Plastics has no effect on the direction of APG Securities i.e., APG Securities and Pha Le go up and down completely randomly.
Pair Corralation between APG Securities and Pha Le
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 2.08 times more return on investment than Pha Le. However, APG Securities is 2.08 times more volatile than Pha Le Plastics. It trades about 0.25 of its potential returns per unit of risk. Pha Le Plastics is currently generating about 0.01 per unit of risk. If you would invest 608,000 in APG Securities Joint on November 5, 2024 and sell it today you would earn a total of 92,000 from holding APG Securities Joint or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Pha Le Plastics
Performance |
| Timeline |
| APG Securities Joint |
| Pha Le Plastics |
APG Securities and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Pha Le
The main advantage of trading using opposite APG Securities and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Pha Le 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 Pha Le will offset losses from the drop in Pha Le's long position.| APG Securities vs. Binh Duong Construction | APG Securities vs. Sea Air Freight | APG Securities vs. Binhthuan Agriculture Services | APG Securities vs. Tng Investment And |
| Pha Le vs. Hai An Transport | Pha Le vs. Petrolimex Petrochemical JSC | Pha Le vs. Transport and Industry | Pha Le vs. Nam Kim Steel |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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