Correlation Between Sangsangin Investment and Aprogen KIC
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Aprogen KIC 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 Sangsangin Investment and Aprogen KIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Aprogen KIC, you can compare the effects of market volatilities on Sangsangin Investment and Aprogen KIC 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 Sangsangin Investment with a short position of Aprogen KIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Aprogen KIC.
Diversification Opportunities for Sangsangin Investment and Aprogen KIC
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsangin and Aprogen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Aprogen KIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen KIC and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Aprogen KIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen KIC has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Aprogen KIC go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Aprogen KIC
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Aprogen KIC. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 4.08 times less risky than Aprogen KIC. The stock trades about -0.23 of its potential returns per unit of risk. The Aprogen KIC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 74,400 in Aprogen KIC on August 25, 2024 and sell it today you would earn a total of 40,200 from holding Aprogen KIC or generate 54.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Aprogen KIC
Performance |
| Timeline |
| Sangsangin Investment |
| Aprogen KIC |
Sangsangin Investment and Aprogen KIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Aprogen KIC
The main advantage of trading using opposite Sangsangin Investment and Aprogen KIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Aprogen KIC 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 Aprogen KIC will offset losses from the drop in Aprogen KIC's long position.| Sangsangin Investment vs. Korea New Network | Sangsangin Investment vs. Dong A Eltek | Sangsangin Investment vs. Dreamus Company | Sangsangin Investment vs. SK Bioscience Co |
| Aprogen KIC vs. Atinum Investment Co | Aprogen KIC vs. EBEST Investment Securities | Aprogen KIC vs. SBI Investment KOREA | Aprogen KIC vs. Sangsangin Investment Securities |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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