Correlation Between APG Securities and Vietnam National
Can any of the company-specific risk be diversified away by investing in both APG Securities and Vietnam National 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 National 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 National Reinsurance, you can compare the effects of market volatilities on APG Securities and Vietnam National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of APG Securities and Vietnam National.
Diversification Opportunities for APG Securities and Vietnam National
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between APG and Vietnam is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding APG Securities Joint and Vietnam National Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam National Rei 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam National Rei has no effect on the direction of APG Securities i.e., APG Securities and Vietnam National go up and down completely randomly.
Pair Corralation between APG Securities and Vietnam National
Assuming the 90 days trading horizon APG Securities Joint is expected to generate 2.0 times more return on investment than Vietnam National. However, APG Securities is 2.0 times more volatile than Vietnam National Reinsurance. It trades about 0.05 of its potential returns per unit of risk. Vietnam National Reinsurance is currently generating about 0.04 per unit of risk. If you would invest 597,000 in APG Securities Joint on August 24, 2024 and sell it today you would earn a total of 319,000 from holding APG Securities Joint or generate 53.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
APG Securities Joint vs. Vietnam National Reinsurance
Performance |
| Timeline |
| APG Securities Joint |
| Vietnam National Rei |
APG Securities and Vietnam National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APG Securities and Vietnam National
The main advantage of trading using opposite APG Securities and Vietnam National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APG Securities position performs unexpectedly, Vietnam National 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 National will offset losses from the drop in Vietnam National'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 |
| Vietnam National vs. Sao Vang Rubber | Vietnam National vs. Century Synthetic Fiber | Vietnam National vs. Construction And Investment | Vietnam National vs. Saigon Telecommunication Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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