Correlation Between APG Securities and Sao Vang
Can any of the company-specific risk be diversified away by investing in both APG Securities and Sao Vang 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 Sao Vang 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 Sao Vang Rubber, you can compare the effects of market volatilities on APG Securities and Sao Vang 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 Sao Vang. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Sao Vang.
Diversification Opportunities for APG Securities and Sao Vang
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between APG and Sao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Sao Vang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sao Vang Rubber 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 Sao Vang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sao Vang Rubber has no effect on the direction of APG Securities i.e., APG Securities and Sao Vang go up and down completely randomly.
Pair Corralation between APG Securities and Sao Vang
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 0.09 times more return on investment than Sao Vang. However, APG Securities Joint is 10.82 times less risky than Sao Vang. It trades about -0.12 of its potential returns per unit of risk. Sao Vang Rubber is currently generating about -0.12 per unit of risk. If you would invest 922,000 in APG Securities Joint on August 27, 2024 and sell it today you would lose (8,000) from holding APG Securities Joint or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 66.67% |
| Values | Daily Returns |
APG Securities Joint vs. Sao Vang Rubber
Performance |
| Timeline |
| APG Securities Joint |
| Sao Vang Rubber |
APG Securities and Sao Vang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Sao Vang
The main advantage of trading using opposite APG Securities and Sao Vang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Sao Vang 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 Sao Vang will offset losses from the drop in Sao Vang's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Binhthuan Agriculture Services |
| Sao Vang vs. FIT INVEST JSC | Sao Vang vs. Damsan JSC | Sao Vang vs. An Phat Plastic | Sao Vang 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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