Correlation Between Industrial Urban and APG Securities
Can any of the company-specific risk be diversified away by investing in both Industrial Urban 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 Industrial Urban and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Urban Development and APG Securities Joint, you can compare the effects of market volatilities on Industrial Urban 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 Industrial Urban with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Urban and APG Securities.
Diversification Opportunities for Industrial Urban and APG Securities
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and APG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Urban Development 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 Industrial Urban 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 Industrial Urban Development 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 Industrial Urban i.e., Industrial Urban and APG Securities go up and down completely randomly.
Pair Corralation between Industrial Urban and APG Securities
Assuming the 90 days trading horizon Industrial Urban Development is expected to generate 0.2 times more return on investment than APG Securities. However, Industrial Urban Development is 5.03 times less risky than APG Securities. It trades about -0.04 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.23 per unit of risk. If you would invest 3,165,000 in Industrial Urban Development on October 13, 2024 and sell it today you would lose (25,000) from holding Industrial Urban Development or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Urban Development vs. APG Securities Joint
Performance |
| Timeline |
| Industrial Urban Dev |
| APG Securities Joint |
Industrial Urban and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Urban and APG Securities
The main advantage of trading using opposite Industrial Urban and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Urban 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.| Industrial Urban vs. FIT INVEST JSC | Industrial Urban vs. Damsan JSC | Industrial Urban vs. An Phat Plastic | Industrial Urban vs. APG Securities Joint |
| APG Securities vs. Nafoods Group JSC | APG Securities vs. Elcom Technology Communications | APG Securities vs. PetroVietnam Drilling Well | APG Securities vs. Industrial Urban Development |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |