Correlation Between APG Securities and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both APG Securities and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on APG Securities and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and POST TELECOMMU.
Diversification Opportunities for APG Securities and POST TELECOMMU
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APG and POST is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of APG Securities i.e., APG Securities and POST TELECOMMU go up and down completely randomly.
Pair Corralation between APG Securities and POST TELECOMMU
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 2.69 times more return on investment than POST TELECOMMU. However, APG Securities is 2.69 times more volatile than POST TELECOMMU. It trades about -0.01 of its potential returns per unit of risk. POST TELECOMMU is currently generating about -0.15 per unit of risk. If you would invest 719,000 in APG Securities Joint on October 28, 2024 and sell it today you would lose (19,000) from holding APG Securities Joint or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
APG Securities Joint vs. POST TELECOMMU
Performance |
| Timeline |
| APG Securities Joint |
| POST TELECOMMU |
APG Securities and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and POST TELECOMMU
The main advantage of trading using opposite APG Securities and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| APG Securities vs. Vietnam Technological And | APG Securities vs. Danang Education Investment | APG Securities vs. Sao Ta Foods | APG Securities vs. Innovative Technology Development |
| POST TELECOMMU vs. Sao Ta Foods | POST TELECOMMU vs. Petrovietnam Drilling Mud | POST TELECOMMU vs. Tienlen Steel Corp | POST TELECOMMU vs. Innovative Technology Development |
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 Stocks Directory module to find actively traded stocks across global markets.
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