Correlation Between Asia Fiber and AP Public
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and AP Public 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 Asia Fiber and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and AP Public, you can compare the effects of market volatilities on Asia Fiber and AP Public 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 Asia Fiber with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and AP Public.
Diversification Opportunities for Asia Fiber and AP Public
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and AP Public is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Asia Fiber i.e., Asia Fiber and AP Public go up and down completely randomly.
Pair Corralation between Asia Fiber and AP Public
Assuming the 90 days trading horizon Asia Fiber Public is expected to under-perform the AP Public. In addition to that, Asia Fiber is 1.16 times more volatile than AP Public. It trades about -0.1 of its total potential returns per unit of risk. AP Public is currently generating about 0.06 per unit of volatility. If you would invest 810.00 in AP Public on December 30, 2024 and sell it today you would earn a total of 50.00 from holding AP Public or generate 6.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asia Fiber Public vs. AP Public
Performance |
Timeline |
Asia Fiber Public |
AP Public |
Asia Fiber and AP Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asia Fiber and AP Public
The main advantage of trading using opposite Asia Fiber and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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