Correlation Between Sajo Seafood and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Sajo Seafood 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 Sajo Seafood and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sajo Seafood and Aprogen Healthcare Games, you can compare the effects of market volatilities on Sajo Seafood 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 Sajo Seafood with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sajo Seafood and Aprogen Healthcare.
Diversification Opportunities for Sajo Seafood and Aprogen Healthcare
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sajo and Aprogen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sajo Seafood 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 Sajo Seafood 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 Sajo Seafood 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 Sajo Seafood i.e., Sajo Seafood and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Sajo Seafood and Aprogen Healthcare
Assuming the 90 days trading horizon Sajo Seafood is expected to generate 0.36 times more return on investment than Aprogen Healthcare. However, Sajo Seafood is 2.8 times less risky than Aprogen Healthcare. It trades about -0.27 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.15 per unit of risk. If you would invest 477,500 in Sajo Seafood on October 24, 2024 and sell it today you would lose (30,500) from holding Sajo Seafood or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sajo Seafood vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Sajo Seafood |
| Aprogen Healthcare Games |
Sajo Seafood and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sajo Seafood and Aprogen Healthcare
The main advantage of trading using opposite Sajo Seafood and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sajo Seafood 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.| Sajo Seafood vs. SEOJEON ELECTRIC MACHINERY | Sajo Seafood vs. Hanshin Construction Co | Sajo Seafood vs. SK Chemicals Co | Sajo Seafood vs. Dongkuk Structures Construction |
| Aprogen Healthcare vs. Hyundai Green Food | Aprogen Healthcare vs. Seoul Food Industrial | Aprogen Healthcare vs. Dongbu Insurance Co | Aprogen Healthcare vs. Sajo Seafood |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings 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 | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |