Correlation Between Aprogen KIC and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Aprogen KIC and Samsung Electronics 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 Aprogen KIC and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aprogen KIC and Samsung Electronics Co, you can compare the effects of market volatilities on Aprogen KIC and Samsung Electronics 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 Aprogen KIC with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen KIC and Samsung Electronics.
Diversification Opportunities for Aprogen KIC and Samsung Electronics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aprogen and Samsung is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen KIC and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Aprogen KIC 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 Aprogen KIC are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Aprogen KIC i.e., Aprogen KIC and Samsung Electronics go up and down completely randomly.
Pair Corralation between Aprogen KIC and Samsung Electronics
Assuming the 90 days trading horizon Aprogen KIC is expected to under-perform the Samsung Electronics. In addition to that, Aprogen KIC is 1.76 times more volatile than Samsung Electronics Co. It trades about -0.13 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of volatility. If you would invest 4,795,000 in Samsung Electronics Co on September 1, 2024 and sell it today you would lose (175,000) from holding Samsung Electronics Co or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aprogen KIC vs. Samsung Electronics Co
Performance |
| Timeline |
| Aprogen KIC |
| Samsung Electronics |
Aprogen KIC and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen KIC and Samsung Electronics
The main advantage of trading using opposite Aprogen KIC and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen KIC position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Aprogen KIC vs. Korea New Network | Aprogen KIC vs. ICD Co | Aprogen KIC vs. DYPNF CoLtd | Aprogen KIC vs. Busan Industrial Co |
| Samsung Electronics vs. Seoul Electronics Telecom | Samsung Electronics vs. Ni Steel | Samsung Electronics vs. CKH Food Health | Samsung Electronics vs. Daedong Steel 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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