Correlation Between FPT Digital and APG Securities
Can any of the company-specific risk be diversified away by investing in both FPT Digital 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 FPT Digital and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Digital Retail and APG Securities Joint, you can compare the effects of market volatilities on FPT Digital 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 FPT Digital with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Digital and APG Securities.
Diversification Opportunities for FPT Digital and APG Securities
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FPT and APG is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FPT Digital Retail 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 FPT Digital 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 FPT Digital Retail 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 FPT Digital i.e., FPT Digital and APG Securities go up and down completely randomly.
Pair Corralation between FPT Digital and APG Securities
Assuming the 90 days trading horizon FPT Digital Retail is expected to generate 0.32 times more return on investment than APG Securities. However, FPT Digital Retail is 3.1 times less risky than APG Securities. It trades about 0.32 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.16 per unit of risk. If you would invest 17,850,000 in FPT Digital Retail on October 30, 2024 and sell it today you would earn a total of 2,750,000 from holding FPT Digital Retail or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Digital Retail vs. APG Securities Joint
Performance |
| Timeline |
| FPT Digital Retail |
| APG Securities Joint |
FPT Digital and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Digital and APG Securities
The main advantage of trading using opposite FPT Digital and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Digital 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.| FPT Digital vs. IDJ FINANCIAL | FPT Digital vs. PV2 Investment JSC | FPT Digital vs. VietinBank Securities JSC | FPT Digital vs. Petrolimex Insurance Corp |
| APG Securities vs. Petrovietnam Drilling Mud | APG Securities vs. Transimex Transportation JSC | APG Securities vs. Hung Hau Agricultural | APG Securities vs. PetroVietnam Transportation 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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