Correlation Between Kien Giang and APG Securities
Can any of the company-specific risk be diversified away by investing in both Kien Giang 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 Kien Giang and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kien Giang Construction and APG Securities Joint, you can compare the effects of market volatilities on Kien Giang 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 Kien Giang with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and APG Securities.
Diversification Opportunities for Kien Giang and APG Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kien and APG is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction 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 Kien Giang 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 Kien Giang Construction 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 Kien Giang i.e., Kien Giang and APG Securities go up and down completely randomly.
Pair Corralation between Kien Giang and APG Securities
Assuming the 90 days trading horizon Kien Giang Construction is expected to under-perform the APG Securities. But the stock apears to be less risky and, when comparing its historical volatility, Kien Giang Construction is 2.38 times less risky than APG Securities. The stock trades about -0.53 of its potential returns per unit of risk. The APG Securities Joint is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 679,000 in APG Securities Joint on October 30, 2024 and sell it today you would earn a total of 21,000 from holding APG Securities Joint or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kien Giang Construction vs. APG Securities Joint
Performance |
| Timeline |
| Kien Giang Construction |
| APG Securities Joint |
Kien Giang and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and APG Securities
The main advantage of trading using opposite Kien Giang and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang 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.| Kien Giang vs. FPT Digital Retail | Kien Giang vs. PetroVietnam Transportation Corp | Kien Giang vs. 577 Investment Corp | Kien Giang vs. Tien Giang Investment |
| APG Securities vs. AgriBank Securities JSC | APG Securities vs. PVI Reinsurance Corp | APG Securities vs. BaoMinh Insurance Corp | APG Securities vs. Military Insurance Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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