Correlation Between Pha Lai and APG Securities
Can any of the company-specific risk be diversified away by investing in both Pha Lai 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 Pha Lai and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pha Lai Thermal and APG Securities Joint, you can compare the effects of market volatilities on Pha Lai 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 Pha Lai with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and APG Securities.
Diversification Opportunities for Pha Lai and APG Securities
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pha and APG is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal 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 Pha Lai 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 Pha Lai Thermal 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 Pha Lai i.e., Pha Lai and APG Securities go up and down completely randomly.
Pair Corralation between Pha Lai and APG Securities
Assuming the 90 days trading horizon Pha Lai is expected to generate 7.46 times less return on investment than APG Securities. But when comparing it to its historical volatility, Pha Lai Thermal is 1.74 times less risky than APG Securities. It trades about 0.01 of its potential returns per unit of risk. APG Securities Joint is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 682,000 in APG Securities Joint on November 27, 2024 and sell it today you would earn a total of 237,000 from holding APG Securities Joint or generate 34.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. APG Securities Joint
Performance |
| Timeline |
| Pha Lai Thermal |
| APG Securities Joint |
Pha Lai and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and APG Securities
The main advantage of trading using opposite Pha Lai and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai 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.| Pha Lai vs. Riverway Management JSC | Pha Lai vs. Duong Hieu Trading | Pha Lai vs. HVC Investment and | Pha Lai vs. CEO Group JSC |
| APG Securities vs. PetroVietnam Transportation Corp | APG Securities vs. Fecon Mining JSC | APG Securities vs. Petrovietnam Technical Services | APG Securities vs. VietinBank Securities JSC |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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