Correlation Between Keyang Electric and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Keyang Electric 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 Keyang Electric and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keyang Electric Machinery and Aprogen Healthcare Games, you can compare the effects of market volatilities on Keyang Electric 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 Keyang Electric with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keyang Electric and Aprogen Healthcare.
Diversification Opportunities for Keyang Electric and Aprogen Healthcare
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Keyang and Aprogen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Keyang Electric Machinery 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 Keyang Electric 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 Keyang Electric Machinery 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 Keyang Electric i.e., Keyang Electric and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Keyang Electric and Aprogen Healthcare
Assuming the 90 days trading horizon Keyang Electric Machinery is expected to generate 1.16 times more return on investment than Aprogen Healthcare. However, Keyang Electric is 1.16 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 -0.1 per unit of risk. If you would invest 375,000 in Keyang Electric Machinery on November 7, 2024 and sell it today you would earn a total of 15,500 from holding Keyang Electric Machinery or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keyang Electric Machinery vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Keyang Electric Machinery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Aprogen Healthcare Games |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Keyang Electric and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keyang Electric and Aprogen Healthcare
The main advantage of trading using opposite Keyang Electric and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keyang Electric 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.| Keyang Electric vs. Seers Technology | Keyang Electric vs. Mobile Appliance | Keyang Electric vs. Guyoung Technology Co | Keyang Electric vs. Pan Entertainment Co |
| Aprogen Healthcare vs. Samick Musical Instruments | Aprogen Healthcare vs. Seoul Semiconductor Co | Aprogen Healthcare vs. Automobile Pc | Aprogen Healthcare vs. PNC Technologies 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |