Correlation Between Seoul Food and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Seoul Food 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 Seoul Food and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Food Industrial and Aprogen Healthcare Games, you can compare the effects of market volatilities on Seoul Food 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 Seoul Food with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Food and Aprogen Healthcare.
Diversification Opportunities for Seoul Food and Aprogen Healthcare
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seoul and Aprogen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Food Industrial 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 Seoul Food 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 Seoul Food Industrial 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 Seoul Food i.e., Seoul Food and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Seoul Food and Aprogen Healthcare
Assuming the 90 days trading horizon Seoul Food Industrial is expected to generate 0.32 times more return on investment than Aprogen Healthcare. However, Seoul Food Industrial is 3.09 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 -0.07 per unit of risk. If you would invest 14,800 in Seoul Food Industrial on November 3, 2024 and sell it today you would lose (300.00) from holding Seoul Food Industrial or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Food Industrial vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Seoul Food Industrial |
| Aprogen Healthcare Games |
Seoul Food and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Food and Aprogen Healthcare
The main advantage of trading using opposite Seoul Food and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Food 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.| Seoul Food vs. Handok Clean Tech | Seoul Food vs. Samji Electronics Co | Seoul Food vs. INFINITT Healthcare Co | Seoul Food vs. LG Household Healthcare |
| Aprogen Healthcare vs. Anam Electronics Co | Aprogen Healthcare vs. Formetal Co | Aprogen Healthcare vs. Lee Ku Industrial | Aprogen Healthcare vs. Industrial Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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