Correlation Between Truong Thanh and APG Securities
Can any of the company-specific risk be diversified away by investing in both Truong Thanh 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 Truong Thanh and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truong Thanh Furniture and APG Securities Joint, you can compare the effects of market volatilities on Truong Thanh 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 Truong Thanh with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truong Thanh and APG Securities.
Diversification Opportunities for Truong Thanh and APG Securities
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Truong and APG is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Truong Thanh Furniture 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 Truong Thanh 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 Truong Thanh Furniture 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 Truong Thanh i.e., Truong Thanh and APG Securities go up and down completely randomly.
Pair Corralation between Truong Thanh and APG Securities
Assuming the 90 days trading horizon Truong Thanh Furniture is expected to generate 0.52 times more return on investment than APG Securities. However, Truong Thanh Furniture is 1.92 times less risky than APG Securities. It trades about 0.0 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.45 per unit of risk. If you would invest 311,000 in Truong Thanh Furniture on October 11, 2024 and sell it today you would lose (1,000.00) from holding Truong Thanh Furniture or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Truong Thanh Furniture vs. APG Securities Joint
Performance |
| Timeline |
| Truong Thanh Furniture |
| APG Securities Joint |
Truong Thanh and APG Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truong Thanh and APG Securities
The main advantage of trading using opposite Truong Thanh and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truong Thanh 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.| Truong Thanh vs. FIT INVEST JSC | Truong Thanh vs. Damsan JSC | Truong Thanh vs. An Phat Plastic | Truong Thanh vs. APG Securities Joint |
| APG Securities vs. 1369 Construction JSC | APG Securities vs. Truong Thanh Furniture | APG Securities vs. Investment And Construction | APG Securities vs. Pacific Petroleum Transportation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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