Correlation Between Asia Pacific and Ba Ria
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and Ba Ria 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 Ba Ria 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 Ba Ria Thermal, you can compare the effects of market volatilities on Asia Pacific and Ba Ria 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 Ba Ria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and Ba Ria.
Diversification Opportunities for Asia Pacific and Ba Ria
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asia and BTP is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Investment and Ba Ria Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ba Ria Thermal 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 Ba Ria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ba Ria Thermal has no effect on the direction of Asia Pacific i.e., Asia Pacific and Ba Ria go up and down completely randomly.
Pair Corralation between Asia Pacific and Ba Ria
Assuming the 90 days trading horizon Asia Pacific Investment is expected to generate 3.34 times more return on investment than Ba Ria. However, Asia Pacific is 3.34 times more volatile than Ba Ria Thermal. It trades about 0.11 of its potential returns per unit of risk. Ba Ria Thermal is currently generating about -0.22 per unit of risk. If you would invest 760,000 in Asia Pacific Investment on September 13, 2024 and sell it today you would earn a total of 50,000 from holding Asia Pacific Investment or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Pacific Investment vs. Ba Ria Thermal
Performance |
| Timeline |
| Asia Pacific Investment |
| Ba Ria Thermal |
Asia Pacific and Ba Ria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and Ba Ria
The main advantage of trading using opposite Asia Pacific and Ba Ria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, Ba Ria 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 Ba Ria will offset losses from the drop in Ba Ria's long position.| Asia Pacific vs. PVI Reinsurance Corp | Asia Pacific vs. Military Insurance Corp | Asia Pacific vs. Saigon Beer Alcohol | Asia Pacific vs. Hanoi Beer Alcohol |
| Ba Ria vs. Saigon Telecommunication Technologies | Ba Ria vs. Vina2 Investment and | Ba Ria vs. Thanh Dat Investment | Ba Ria vs. CEO Group JSC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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