Correlation Between TDG Global and APG Securities
Can any of the company-specific risk be diversified away by investing in both TDG Global 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 TDG Global and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TDG Global Investment and APG Securities Joint, you can compare the effects of market volatilities on TDG Global 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 TDG Global with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of TDG Global and APG Securities.
Diversification Opportunities for TDG Global and APG Securities
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TDG and APG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding TDG Global 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 TDG Global 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 TDG Global 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 TDG Global i.e., TDG Global and APG Securities go up and down completely randomly.
Pair Corralation between TDG Global and APG Securities
Assuming the 90 days trading horizon TDG Global is expected to generate 2.27 times less return on investment than APG Securities. But when comparing it to its historical volatility, TDG Global Investment is 1.06 times less risky than APG Securities. It trades about 0.02 of its potential returns per unit of risk. APG Securities Joint is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 554,000 in APG Securities Joint on August 29, 2024 and sell it today you would earn a total of 351,000 from holding APG Securities Joint or generate 63.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TDG Global Investment vs. APG Securities Joint
Performance |
| Timeline |
| TDG Global Investment |
| APG Securities Joint |
TDG Global and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TDG Global and APG Securities
The main advantage of trading using opposite TDG Global and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TDG Global 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.| TDG Global vs. FIT INVEST JSC | TDG Global vs. Damsan JSC | TDG Global vs. An Phat Plastic | TDG Global vs. APG Securities Joint |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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