Correlation Between Samyang Foods and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Samyang Foods 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 Samyang Foods and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Samyang Foods 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 Samyang Foods with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Aprogen Healthcare.
Diversification Opportunities for Samyang Foods and Aprogen Healthcare
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyang and Aprogen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods 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 Samyang Foods 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 Samyang Foods 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 Samyang Foods i.e., Samyang Foods and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Samyang Foods and Aprogen Healthcare
Assuming the 90 days trading horizon Samyang Foods is expected to generate 6.75 times less return on investment than Aprogen Healthcare. But when comparing it to its historical volatility, Samyang Foods Co is 1.01 times less risky than Aprogen Healthcare. It trades about 0.01 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 53,600 in Aprogen Healthcare Games on August 29, 2024 and sell it today you would earn a total of 1,800 from holding Aprogen Healthcare Games or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Samyang Foods |
| Aprogen Healthcare Games |
Samyang Foods and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Aprogen Healthcare
The main advantage of trading using opposite Samyang Foods and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods 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.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| Aprogen Healthcare vs. NewFlex Technology Co | Aprogen Healthcare vs. Ilji Technology Co | Aprogen Healthcare vs. Green Cross Medical | Aprogen Healthcare vs. Eugene Technology CoLtd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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