Correlation Between APG Securities and Saigon Machinery
Can any of the company-specific risk be diversified away by investing in both APG Securities and Saigon Machinery 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 Machinery 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 Machinery Spare, you can compare the effects of market volatilities on APG Securities and Saigon Machinery 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 Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Saigon Machinery.
Diversification Opportunities for APG Securities and Saigon Machinery
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APG and Saigon is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Saigon Machinery Spare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Machinery Spare 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 Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Machinery Spare has no effect on the direction of APG Securities i.e., APG Securities and Saigon Machinery go up and down completely randomly.
Pair Corralation between APG Securities and Saigon Machinery
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Saigon Machinery. In addition to that, APG Securities is 1.4 times more volatile than Saigon Machinery Spare. It trades about -0.24 of its total potential returns per unit of risk. Saigon Machinery Spare is currently generating about 1.03 per unit of volatility. If you would invest 1,090,000 in Saigon Machinery Spare on October 16, 2024 and sell it today you would earn a total of 510,000 from holding Saigon Machinery Spare or generate 46.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
APG Securities Joint vs. Saigon Machinery Spare
Performance |
| Timeline |
| APG Securities Joint |
| Saigon Machinery Spare |
APG Securities and Saigon Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Saigon Machinery
The main advantage of trading using opposite APG Securities and Saigon Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Saigon Machinery 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 Machinery will offset losses from the drop in Saigon Machinery's long position.| APG Securities vs. Hai An Transport | APG Securities vs. Techno Agricultural Supplying | APG Securities vs. FPT Digital Retail | APG Securities vs. Elcom Technology Communications |
| Saigon Machinery vs. FIT INVEST JSC | Saigon Machinery vs. Damsan JSC | Saigon Machinery vs. An Phat Plastic | Saigon Machinery 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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