Correlation Between APG Securities and Century Synthetic
Can any of the company-specific risk be diversified away by investing in both APG Securities and Century Synthetic 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 Century Synthetic 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 Century Synthetic Fiber, you can compare the effects of market volatilities on APG Securities and Century Synthetic 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 Century Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Century Synthetic.
Diversification Opportunities for APG Securities and Century Synthetic
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APG and Century is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Century Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Synthetic Fiber 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 Century Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Synthetic Fiber has no effect on the direction of APG Securities i.e., APG Securities and Century Synthetic go up and down completely randomly.
Pair Corralation between APG Securities and Century Synthetic
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Century Synthetic. In addition to that, APG Securities is 1.41 times more volatile than Century Synthetic Fiber. It trades about -0.18 of its total potential returns per unit of risk. Century Synthetic Fiber is currently generating about -0.07 per unit of volatility. If you would invest 2,625,000 in Century Synthetic Fiber on August 29, 2024 and sell it today you would lose (170,000) from holding Century Synthetic Fiber or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
APG Securities Joint vs. Century Synthetic Fiber
Performance |
| Timeline |
| APG Securities Joint |
| Century Synthetic Fiber |
APG Securities and Century Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Century Synthetic
The main advantage of trading using opposite APG Securities and Century Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Century Synthetic 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 Century Synthetic will offset losses from the drop in Century Synthetic's long position.| APG Securities vs. FIT INVEST JSC | APG Securities vs. Damsan JSC | APG Securities vs. An Phat Plastic | APG Securities vs. Alphanam ME |
| Century Synthetic vs. FIT INVEST JSC | Century Synthetic vs. Damsan JSC | Century Synthetic vs. An Phat Plastic | Century Synthetic vs. Alphanam ME |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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