Correlation Between APG Securities and Vietnam Petroleum
Can any of the company-specific risk be diversified away by investing in both APG Securities and Vietnam Petroleum 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 Petroleum 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 Petroleum Transport, you can compare the effects of market volatilities on APG Securities and Vietnam Petroleum 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 Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Vietnam Petroleum.
Diversification Opportunities for APG Securities and Vietnam Petroleum
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between APG and Vietnam is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Vietnam Petroleum Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Petroleum 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 Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Petroleum has no effect on the direction of APG Securities i.e., APG Securities and Vietnam Petroleum go up and down completely randomly.
Pair Corralation between APG Securities and Vietnam Petroleum
Assuming the 90 days trading horizon APG Securities Joint is expected to under-perform the Vietnam Petroleum. In addition to that, APG Securities is 1.12 times more volatile than Vietnam Petroleum Transport. It trades about -0.1 of its total potential returns per unit of risk. Vietnam Petroleum Transport is currently generating about 0.06 per unit of volatility. If you would invest 1,055,341 in Vietnam Petroleum Transport on November 3, 2024 and sell it today you would earn a total of 354,659 from holding Vietnam Petroleum Transport or generate 33.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Vietnam Petroleum Transport
Performance |
| Timeline |
| APG Securities Joint |
| Vietnam Petroleum |
APG Securities and Vietnam Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Vietnam Petroleum
The main advantage of trading using opposite APG Securities and Vietnam Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Vietnam Petroleum 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 Petroleum will offset losses from the drop in Vietnam Petroleum's long position.| APG Securities vs. Danang Rubber JSC | APG Securities vs. Fecon Mining JSC | APG Securities vs. Ben Thanh Rubber | APG Securities vs. Binh Minh Plastics |
| Vietnam Petroleum vs. Tin Nghia Industrial | Vietnam Petroleum vs. Viettel Construction JSC | Vietnam Petroleum vs. Hung Hau Agricultural | Vietnam Petroleum vs. Nam Kim Steel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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