Correlation Between Asia Pacific and HVC Investment
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and HVC Investment 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 HVC Investment 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 HVC Investment and, you can compare the effects of market volatilities on Asia Pacific and HVC Investment 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 HVC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and HVC Investment.
Diversification Opportunities for Asia Pacific and HVC Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and HVC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Investment and HVC Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HVC Investment 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 HVC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HVC Investment has no effect on the direction of Asia Pacific i.e., Asia Pacific and HVC Investment go up and down completely randomly.
Pair Corralation between Asia Pacific and HVC Investment
Assuming the 90 days trading horizon Asia Pacific Investment is expected to generate 1.92 times more return on investment than HVC Investment. However, Asia Pacific is 1.92 times more volatile than HVC Investment and. It trades about 0.11 of its potential returns per unit of risk. HVC Investment and is currently generating about 0.15 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Pacific Investment vs. HVC Investment and
Performance |
| Timeline |
| Asia Pacific Investment |
| HVC Investment |
Asia Pacific and HVC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and HVC Investment
The main advantage of trading using opposite Asia Pacific and HVC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, HVC Investment 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 HVC Investment will offset losses from the drop in HVC Investment'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 |
| HVC Investment vs. PetroVietnam Transportation Corp | HVC Investment vs. Techno Agricultural Supplying | HVC Investment vs. Telecoms Informatics JSC | HVC Investment vs. Da Nang 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |