Correlation Between KCC and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both KCC 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 KCC and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCC Corporation and Aprogen Healthcare Games, you can compare the effects of market volatilities on KCC 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 KCC with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCC and Aprogen Healthcare.
Diversification Opportunities for KCC and Aprogen Healthcare
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KCC and Aprogen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding KCC Corp. 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 KCC 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 KCC Corporation 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 KCC i.e., KCC and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between KCC and Aprogen Healthcare
Assuming the 90 days trading horizon KCC Corporation is expected to generate 0.6 times more return on investment than Aprogen Healthcare. However, KCC Corporation is 1.67 times less risky than Aprogen Healthcare. It trades about -0.16 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.17 per unit of risk. If you would invest 30,000,000 in KCC Corporation on September 3, 2024 and sell it today you would lose (5,850,000) from holding KCC Corporation or give up 19.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCC Corp. vs. Aprogen Healthcare Games
Performance |
| Timeline |
| KCC Corporation |
| Aprogen Healthcare Games |
KCC and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCC and Aprogen Healthcare
The main advantage of trading using opposite KCC and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCC 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.| KCC vs. Daejung Chemicals Metals | KCC vs. Heungkuk Metaltech CoLtd | KCC vs. Kbi Metal Co | KCC vs. Hanjoo Light Metal |
| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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