Correlation Between APG Securities and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both APG Securities and Vietnam Technological 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 Vietnam Technological 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 Vietnam Technological And, you can compare the effects of market volatilities on APG Securities and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Vietnam Technological.
Diversification Opportunities for APG Securities and Vietnam Technological
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APG and Vietnam is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of APG Securities i.e., APG Securities and Vietnam Technological go up and down completely randomly.
Pair Corralation between APG Securities and Vietnam Technological
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 2.98 times more return on investment than Vietnam Technological. However, APG Securities is 2.98 times more volatile than Vietnam Technological And. It trades about 0.06 of its potential returns per unit of risk. Vietnam Technological And is currently generating about 0.06 per unit of risk. If you would invest 679,000 in APG Securities Joint on October 29, 2024 and sell it today you would earn a total of 21,000 from holding APG Securities Joint or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Vietnam Technological And
Performance |
| Timeline |
| APG Securities Joint |
| Vietnam Technological And |
APG Securities and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Vietnam Technological
The main advantage of trading using opposite APG Securities and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological's long position.| APG Securities vs. Vietnam Technological And | APG Securities vs. Danang Education Investment | APG Securities vs. Sao Ta Foods | APG Securities vs. Innovative Technology Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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