Correlation Between Asia Pacific and APG Securities
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and APG Securities 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 Asia Pacific and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Pacific Investment and APG Securities Joint, you can compare the effects of market volatilities on Asia Pacific and APG Securities 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 Asia Pacific with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and APG Securities.
Diversification Opportunities for Asia Pacific and APG Securities
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and APG is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Investment and APG Securities Joint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APG Securities Joint and Asia Pacific 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 Asia Pacific Investment are associated (or correlated) with APG Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APG Securities Joint has no effect on the direction of Asia Pacific i.e., Asia Pacific and APG Securities go up and down completely randomly.
Pair Corralation between Asia Pacific and APG Securities
Assuming the 90 days trading horizon Asia Pacific Investment is expected to under-perform the APG Securities. In addition to that, Asia Pacific is 1.52 times more volatile than APG Securities Joint. It trades about -0.01 of its total potential returns per unit of risk. APG Securities Joint is currently generating about 0.05 per unit of volatility. If you would invest 597,000 in APG Securities Joint on August 26, 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 | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asia Pacific Investment vs. APG Securities Joint
Performance |
| Timeline |
| Asia Pacific Investment |
| APG Securities Joint |
Asia Pacific and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and APG Securities
The main advantage of trading using opposite Asia Pacific and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, APG Securities 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 APG Securities will offset losses from the drop in APG Securities' long position.| Asia Pacific vs. FIT INVEST JSC | Asia Pacific vs. Damsan JSC | Asia Pacific vs. An Phat Plastic | Asia Pacific vs. APG Securities Joint |
| APG Securities vs. Vietnam JSCmmercial Bank | APG Securities vs. TDG Global Investment | APG Securities vs. BaoMinh Insurance Corp | APG Securities vs. Development Investment Construction |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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