Correlation Between Long Giang and APG Securities
Can any of the company-specific risk be diversified away by investing in both Long 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 Long 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 Long Giang Investment and APG Securities Joint, you can compare the effects of market volatilities on Long 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 Long Giang with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Giang and APG Securities.
Diversification Opportunities for Long Giang and APG Securities
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Long and APG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Long Giang Investment 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 Long 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 Long Giang Investment 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 Long Giang i.e., Long Giang and APG Securities go up and down completely randomly.
Pair Corralation between Long Giang and APG Securities
Assuming the 90 days trading horizon Long Giang Investment is expected to generate 0.56 times more return on investment than APG Securities. However, Long Giang Investment is 1.78 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 -0.14 per unit of risk. If you would invest 350,000 in Long Giang Investment on October 12, 2024 and sell it today you would lose (96,000) from holding Long Giang Investment or give up 27.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Giang Investment vs. APG Securities Joint
Performance |
| Timeline |
| Long Giang Investment |
| APG Securities Joint |
Long Giang and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Giang and APG Securities
The main advantage of trading using opposite Long Giang and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long 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.| Long Giang vs. Fecon Mining JSC | Long Giang vs. Investment and Industrial | Long Giang vs. Post and Telecommunications | Long Giang vs. Ducgiang Chemicals Detergent |
| APG Securities vs. Vina2 Investment and | APG Securities vs. Thanh Dat Investment | APG Securities vs. Development Investment Construction | APG Securities vs. Long Giang Investment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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