Correlation Between Vietnam Technological and APG Securities
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological 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 Vietnam Technological and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Technological And and APG Securities Joint, you can compare the effects of market volatilities on Vietnam Technological 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 Vietnam Technological with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and APG Securities.
Diversification Opportunities for Vietnam Technological and APG Securities
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and APG is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And 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 Vietnam Technological 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 Vietnam Technological And 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 Vietnam Technological i.e., Vietnam Technological and APG Securities go up and down completely randomly.
Pair Corralation between Vietnam Technological and APG Securities
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 1.97 times more return on investment than APG Securities. However, Vietnam Technological is 1.97 times more volatile than APG Securities Joint. It trades about 0.04 of its potential returns per unit of risk. APG Securities Joint is currently generating about 0.03 per unit of risk. If you would invest 1,352,897 in Vietnam Technological And on November 7, 2024 and sell it today you would earn a total of 1,100,103 from holding Vietnam Technological And or generate 81.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Technological And vs. APG Securities Joint
Performance |
| Timeline |
| Vietnam Technological And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| APG Securities Joint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vietnam Technological and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and APG Securities
The main advantage of trading using opposite Vietnam Technological and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological 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.The idea behind Vietnam Technological And and APG Securities Joint pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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