Correlation Between HMM and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both HMM 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 HMM and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HMM Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on HMM 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 HMM with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMM and Aprogen Healthcare.
Diversification Opportunities for HMM and Aprogen Healthcare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between HMM and Aprogen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HMM 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 HMM 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 HMM 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 HMM i.e., HMM and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between HMM and Aprogen Healthcare
Assuming the 90 days trading horizon HMM Co is expected to generate 1.61 times more return on investment than Aprogen Healthcare. However, HMM is 1.61 times more volatile than Aprogen Healthcare Games. It trades about 0.11 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.05 per unit of risk. If you would invest 1,817,000 in HMM Co on October 25, 2024 and sell it today you would earn a total of 100,000 from holding HMM Co or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMM Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| HMM Co |
| Aprogen Healthcare Games |
HMM and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMM and Aprogen Healthcare
The main advantage of trading using opposite HMM and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMM 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.| HMM vs. Songwon Industrial Co | HMM vs. Seah Steel Corp | HMM vs. Dong A Steel Technology | HMM vs. Lee Ku Industrial |
| Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. SK Hynix | Aprogen Healthcare vs. HMM 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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