Correlation Between 1369 Construction and APG Securities
Can any of the company-specific risk be diversified away by investing in both 1369 Construction 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 1369 Construction and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1369 Construction JSC and APG Securities Joint, you can compare the effects of market volatilities on 1369 Construction 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 1369 Construction with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and APG Securities.
Diversification Opportunities for 1369 Construction and APG Securities
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1369 and APG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC 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 1369 Construction 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 1369 Construction JSC 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 1369 Construction i.e., 1369 Construction and APG Securities go up and down completely randomly.
Pair Corralation between 1369 Construction and APG Securities
Assuming the 90 days trading horizon 1369 Construction JSC is expected to generate 0.37 times more return on investment than APG Securities. However, 1369 Construction JSC is 2.69 times less risky than APG Securities. It trades about -0.1 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.45 per unit of risk. If you would invest 650,000 in 1369 Construction JSC on October 11, 2024 and sell it today you would lose (20,000) from holding 1369 Construction JSC or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1369 Construction JSC vs. APG Securities Joint
Performance |
| Timeline |
| 1369 Construction JSC |
| APG Securities Joint |
1369 Construction and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and APG Securities
The main advantage of trading using opposite 1369 Construction and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction 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.| 1369 Construction vs. Vietnam Dairy Products | 1369 Construction vs. Visicons Construction and | 1369 Construction vs. Fecon Mining JSC | 1369 Construction vs. FPT Digital Retail |
| APG Securities vs. 1369 Construction JSC | APG Securities vs. Truong Thanh Furniture | APG Securities vs. Investment And Construction | APG Securities vs. Pacific Petroleum Transportation |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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