Correlation Between APG Securities and PetroVietnam Transportation
Can any of the company-specific risk be diversified away by investing in both APG Securities and PetroVietnam Transportation 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 PetroVietnam Transportation 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 PetroVietnam Transportation Corp, you can compare the effects of market volatilities on APG Securities and PetroVietnam Transportation 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 PetroVietnam Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and PetroVietnam Transportation.
Diversification Opportunities for APG Securities and PetroVietnam Transportation
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APG and PetroVietnam is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and PetroVietnam Transportation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroVietnam Transportation 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 PetroVietnam Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroVietnam Transportation has no effect on the direction of APG Securities i.e., APG Securities and PetroVietnam Transportation go up and down completely randomly.
Pair Corralation between APG Securities and PetroVietnam Transportation
Assuming the 90 days trading horizon APG Securities is expected to generate 1.39 times less return on investment than PetroVietnam Transportation. In addition to that, APG Securities is 1.31 times more volatile than PetroVietnam Transportation Corp. It trades about 0.03 of its total potential returns per unit of risk. PetroVietnam Transportation Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,697,950 in PetroVietnam Transportation Corp on October 30, 2024 and sell it today you would earn a total of 912,050 from holding PetroVietnam Transportation Corp or generate 53.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. PetroVietnam Transportation Co
Performance |
| Timeline |
| APG Securities Joint |
| PetroVietnam Transportation |
APG Securities and PetroVietnam Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and PetroVietnam Transportation
The main advantage of trading using opposite APG Securities and PetroVietnam Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, PetroVietnam Transportation 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 PetroVietnam Transportation will offset losses from the drop in PetroVietnam Transportation's long position.| APG Securities vs. Petrovietnam Drilling Mud | APG Securities vs. Transimex Transportation JSC | APG Securities vs. Hung Hau Agricultural | APG Securities vs. PetroVietnam Transportation Corp |
| PetroVietnam Transportation vs. FIT INVEST JSC | PetroVietnam Transportation vs. Damsan JSC | PetroVietnam Transportation vs. An Phat Plastic | PetroVietnam Transportation 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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