Correlation Between APG Securities and TDG Global
Can any of the company-specific risk be diversified away by investing in both APG Securities and TDG Global 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 TDG Global 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 TDG Global Investment, you can compare the effects of market volatilities on APG Securities and TDG Global 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 TDG Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and TDG Global.
Diversification Opportunities for APG Securities and TDG Global
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APG and TDG is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and TDG Global Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDG Global Investment 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 TDG Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDG Global Investment has no effect on the direction of APG Securities i.e., APG Securities and TDG Global go up and down completely randomly.
Pair Corralation between APG Securities and TDG Global
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 0.22 times more return on investment than TDG Global. However, APG Securities Joint is 4.47 times less risky than TDG Global. It trades about -0.22 of its potential returns per unit of risk. TDG Global Investment is currently generating about -0.17 per unit of risk. If you would invest 922,000 in APG Securities Joint on August 30, 2024 and sell it today you would lose (22,000) from holding APG Securities Joint or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. TDG Global Investment
Performance |
| Timeline |
| APG Securities Joint |
| TDG Global Investment |
APG Securities and TDG Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and TDG Global
The main advantage of trading using opposite APG Securities and TDG Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, TDG Global 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 TDG Global will offset losses from the drop in TDG Global'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 |
| TDG Global vs. FIT INVEST JSC | TDG Global vs. Damsan JSC | TDG Global vs. An Phat Plastic | TDG Global 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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