Correlation Between Samsung Electronics and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Aprogen Healthcare.
Diversification Opportunities for Samsung Electronics and Aprogen Healthcare
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Aprogen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics i.e., Samsung Electronics and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Samsung Electronics and Aprogen Healthcare
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.6 times more return on investment than Aprogen Healthcare. However, Samsung Electronics Co is 1.66 times less risky than Aprogen Healthcare. It trades about 0.19 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.33 per unit of risk. If you would invest 4,385,000 in Samsung Electronics Co on November 18, 2024 and sell it today you would earn a total of 210,000 from holding Samsung Electronics Co or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Samsung Electronics |
| Aprogen Healthcare Games |
Samsung Electronics and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Aprogen Healthcare
The main advantage of trading using opposite Samsung Electronics and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Seoul Electronics Telecom | Samsung Electronics vs. SungMoon Electronics Co | Samsung Electronics vs. Wave Electronics Co | Samsung Electronics vs. ABCO Electronics Co |
| Aprogen Healthcare vs. PH Tech Co | Aprogen Healthcare vs. Daesung Hi Tech Co | Aprogen Healthcare vs. LG Display Co | Aprogen Healthcare vs. Hanyang Digitech Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |