Correlation Between Hankook Furniture and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Hankook Furniture 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 Hankook Furniture and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankook Furniture Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Hankook Furniture 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 Hankook Furniture with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankook Furniture and Aprogen Healthcare.
Diversification Opportunities for Hankook Furniture and Aprogen Healthcare
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hankook and Aprogen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture i.e., Hankook Furniture and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Hankook Furniture and Aprogen Healthcare
Assuming the 90 days trading horizon Hankook Furniture Co is expected to generate 0.55 times more return on investment than Aprogen Healthcare. However, Hankook Furniture Co is 1.81 times less risky than Aprogen Healthcare. It trades about 0.25 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.06 per unit of risk. If you would invest 369,500 in Hankook Furniture Co on August 29, 2024 and sell it today you would earn a total of 42,000 from holding Hankook Furniture Co or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankook Furniture Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Hankook Furniture |
| Aprogen Healthcare Games |
Hankook Furniture and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankook Furniture and Aprogen Healthcare
The main advantage of trading using opposite Hankook Furniture and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankook Furniture 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.| Hankook Furniture vs. KMH Hitech Co | Hankook Furniture vs. GemVaxKAEL CoLtd | Hankook Furniture vs. Busan Industrial Co | Hankook Furniture vs. Busan Ind |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |