Correlation Between Military Commercial and APG Securities
Can any of the company-specific risk be diversified away by investing in both Military Commercial 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 Military Commercial and APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Military Commercial Joint and APG Securities Joint, you can compare the effects of market volatilities on Military Commercial 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 Military Commercial with a short position of APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Commercial and APG Securities.
Diversification Opportunities for Military Commercial and APG Securities
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Military and APG is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Military Commercial Joint 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 Military Commercial 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 Military Commercial Joint 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 Military Commercial i.e., Military Commercial and APG Securities go up and down completely randomly.
Pair Corralation between Military Commercial and APG Securities
Assuming the 90 days trading horizon Military Commercial is expected to generate 1.63 times less return on investment than APG Securities. But when comparing it to its historical volatility, Military Commercial Joint is 3.42 times less risky than APG Securities. It trades about 0.22 of its potential returns per unit of risk. APG Securities Joint is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 839,000 in APG Securities Joint on December 20, 2024 and sell it today you would earn a total of 171,000 from holding APG Securities Joint or generate 20.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Military Commercial Joint vs. APG Securities Joint
Performance |
Timeline |
Military Commercial Joint |
APG Securities Joint |
Military Commercial and APG Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Military Commercial and APG Securities
The main advantage of trading using opposite Military Commercial and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Commercial 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.Military Commercial vs. Dong Nai Plastic | Military Commercial vs. Hai An Transport | Military Commercial vs. An Phat Plastic | Military Commercial vs. Transimex Transportation JSC |
APG Securities vs. Dinhvu Port Investment | APG Securities vs. TDT Investment and | APG Securities vs. Thu Duc TradingImport | APG Securities vs. Hoang Huy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |