Correlation Between Myoung Shin and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Myoung Shin 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 Myoung Shin and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and Aprogen Healthcare Games, you can compare the effects of market volatilities on Myoung Shin 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 Myoung Shin with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and Aprogen Healthcare.
Diversification Opportunities for Myoung Shin and Aprogen Healthcare
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Myoung and Aprogen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin 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 Myoung Shin 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 Myoung Shin 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 Myoung Shin i.e., Myoung Shin and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Myoung Shin and Aprogen Healthcare
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to under-perform the Aprogen Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Myoung Shin Industrial is 1.92 times less risky than Aprogen Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Aprogen Healthcare Games is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 45,800 in Aprogen Healthcare Games on October 30, 2024 and sell it today you would earn a total of 5,600 from holding Aprogen Healthcare Games or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myoung Shin Industrial vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Myoung Shin Industrial |
| Aprogen Healthcare Games |
Myoung Shin and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and Aprogen Healthcare
The main advantage of trading using opposite Myoung Shin and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin 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.| Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind | Myoung Shin vs. RPBio Inc | Myoung Shin vs. Finebesteel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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