Correlation Between APG Securities and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both APG Securities and Saigon Beer 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 Saigon Beer 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on APG Securities and Saigon Beer 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Saigon Beer.
Diversification Opportunities for APG Securities and Saigon Beer
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between APG and Saigon is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of APG Securities i.e., APG Securities and Saigon Beer go up and down completely randomly.
Pair Corralation between APG Securities and Saigon Beer
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 3.85 times more return on investment than Saigon Beer. However, APG Securities is 3.85 times more volatile than Saigon Beer Alcohol. It trades about 0.43 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.12 per unit of risk. If you would invest 668,000 in APG Securities Joint on November 10, 2024 and sell it today you would earn a total of 200,000 from holding APG Securities Joint or generate 29.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Saigon Beer Alcohol
Performance |
| Timeline |
| APG Securities Joint |
| Saigon Beer Alcohol |
APG Securities and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Saigon Beer
The main advantage of trading using opposite APG Securities and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| APG Securities vs. Song Hong Garment | APG Securities vs. South Basic Chemicals | APG Securities vs. SSIAM VNFIN LEAD | APG Securities vs. Binh Duong Construction |
| Saigon Beer vs. Din Capital Investment | Saigon Beer vs. TDG Global Investment | Saigon Beer vs. South Basic Chemicals | Saigon Beer vs. Tien Giang Investment |
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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