Correlation Between Hung Hau and APG Securities
Can any of the company-specific risk be diversified away by investing in both Hung Hau 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 Hung Hau and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Hau Agricultural and APG Securities Joint, you can compare the effects of market volatilities on Hung Hau 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 Hung Hau with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and APG Securities.
Diversification Opportunities for Hung Hau and APG Securities
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hung and APG is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural 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 Hung Hau 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 Hung Hau Agricultural 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 Hung Hau i.e., Hung Hau and APG Securities go up and down completely randomly.
Pair Corralation between Hung Hau and APG Securities
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 1.18 times more return on investment than APG Securities. However, Hung Hau is 1.18 times more volatile than APG Securities Joint. It trades about 0.25 of its potential returns per unit of risk. APG Securities Joint is currently generating about 0.25 per unit of risk. If you would invest 1,060,000 in Hung Hau Agricultural on November 7, 2024 and sell it today you would earn a total of 90,000 from holding Hung Hau Agricultural or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Hung Hau Agricultural vs. APG Securities Joint
Performance |
| Timeline |
| Hung Hau Agricultural |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| APG Securities Joint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hung Hau and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and APG Securities
The main advantage of trading using opposite Hung Hau and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau 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.| Hung Hau vs. Transport and Industry | Hung Hau vs. Hai An Transport | Hung Hau vs. Vietnam Technological And | Hung Hau vs. Elcom Technology Communications |
| APG Securities vs. Elcom Technology Communications | APG Securities vs. Innovative Technology Development | APG Securities vs. Hai An Transport | APG Securities vs. Transport and Industry |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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