Correlation Between Hwacheon Machinery and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Hwacheon Machinery 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 Hwacheon Machinery and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwacheon Machinery Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Hwacheon Machinery 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 Hwacheon Machinery with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwacheon Machinery and Aprogen Healthcare.
Diversification Opportunities for Hwacheon Machinery and Aprogen Healthcare
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hwacheon and Aprogen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hwacheon Machinery 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 Hwacheon Machinery 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 Hwacheon Machinery 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 Hwacheon Machinery i.e., Hwacheon Machinery and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Hwacheon Machinery and Aprogen Healthcare
Assuming the 90 days trading horizon Hwacheon Machinery Co is expected to under-perform the Aprogen Healthcare. In addition to that, Hwacheon Machinery is 1.17 times more volatile than Aprogen Healthcare Games. It trades about -0.07 of its total potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.04 per unit of volatility. If you would invest 53,600 in Aprogen Healthcare Games on August 27, 2024 and sell it today you would lose (2,100) from holding Aprogen Healthcare Games or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwacheon Machinery Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Hwacheon Machinery |
| Aprogen Healthcare Games |
Hwacheon Machinery and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwacheon Machinery and Aprogen Healthcare
The main advantage of trading using opposite Hwacheon Machinery and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwacheon Machinery 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.| Hwacheon Machinery vs. AptaBio Therapeutics | Hwacheon Machinery vs. Daewoo SBI SPAC | Hwacheon Machinery vs. Dream Security co | Hwacheon Machinery vs. Microfriend |
| Aprogen Healthcare vs. Korea Real Estate | Aprogen Healthcare vs. Korea Ratings Co | Aprogen Healthcare vs. IQuest Co | Aprogen Healthcare vs. Wonbang Tech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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