Correlation Between Origin Property and AP Public
Can any of the company-specific risk be diversified away by investing in both Origin Property and AP Public 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 Origin Property and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Property PCL and AP Public, you can compare the effects of market volatilities on Origin Property and AP Public 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 Origin Property with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Property and AP Public.
Diversification Opportunities for Origin Property and AP Public
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and AP Public is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Origin Property PCL and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Origin Property 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 Origin Property PCL are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Origin Property i.e., Origin Property and AP Public go up and down completely randomly.
Pair Corralation between Origin Property and AP Public
Assuming the 90 days trading horizon Origin Property PCL is expected to under-perform the AP Public. But the stock apears to be less risky and, when comparing its historical volatility, Origin Property PCL is 1.18 times less risky than AP Public. The stock trades about -0.27 of its potential returns per unit of risk. The AP Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 855.00 in AP Public on September 15, 2024 and sell it today you would earn a total of 5.00 from holding AP Public or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Origin Property PCL vs. AP Public
Performance |
| Timeline |
| Origin Property PCL |
| AP Public |
Origin Property and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Property and AP Public
The main advantage of trading using opposite Origin Property and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Property position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Origin Property vs. AP Public | Origin Property vs. Land and Houses | Origin Property vs. WHA Public | Origin Property vs. Quality Houses Public |
| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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