Correlation Between Hanjin Transportation and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Aprogen Healthcare 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 Hanjin Transportation and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Hanjin Transportation and Aprogen Healthcare 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 Hanjin Transportation with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Aprogen Healthcare.
Diversification Opportunities for Hanjin Transportation and Aprogen Healthcare
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanjin and Aprogen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Aprogen Healthcare
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.39 times more return on investment than Aprogen Healthcare. However, Hanjin Transportation Co is 2.59 times less risky than Aprogen Healthcare. It trades about 0.0 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.03 per unit of risk. If you would invest 2,084,850 in Hanjin Transportation Co on October 27, 2024 and sell it today you would lose (144,850) from holding Hanjin Transportation Co or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Hanjin Transportation Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Hanjin Transportation |
| Aprogen Healthcare Games |
Hanjin Transportation and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and Aprogen Healthcare
The main advantage of trading using opposite Hanjin Transportation and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Aprogen Healthcare 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 Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Hanjin Transportation vs. KB Financial Group | Hanjin Transportation vs. Shinhan Financial Group | Hanjin Transportation vs. Hana Financial | Hanjin Transportation vs. Woori Financial Group |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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