Correlation Between Choil Aluminum and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Choil Aluminum 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 Choil Aluminum and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choil Aluminum and Aprogen Healthcare Games, you can compare the effects of market volatilities on Choil Aluminum 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 Choil Aluminum with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choil Aluminum and Aprogen Healthcare.
Diversification Opportunities for Choil Aluminum and Aprogen Healthcare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Choil and Aprogen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Choil Aluminum 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 Choil Aluminum 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 Choil Aluminum 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 Choil Aluminum i.e., Choil Aluminum and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Choil Aluminum and Aprogen Healthcare
Assuming the 90 days trading horizon Choil Aluminum is expected to generate 0.55 times more return on investment than Aprogen Healthcare. However, Choil Aluminum is 1.83 times less risky than Aprogen Healthcare. It trades about 0.38 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.03 per unit of risk. If you would invest 139,500 in Choil Aluminum on October 29, 2024 and sell it today you would earn a total of 10,300 from holding Choil Aluminum or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choil Aluminum vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Choil Aluminum |
| Aprogen Healthcare Games |
Choil Aluminum and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choil Aluminum and Aprogen Healthcare
The main advantage of trading using opposite Choil Aluminum and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choil Aluminum 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.| Choil Aluminum vs. Hankuk Steel Wire | Choil Aluminum vs. Hironic Co | Choil Aluminum vs. Innowireless Co | Choil Aluminum vs. SK Chemicals Co |
| Aprogen Healthcare vs. Taegu Broadcasting | Aprogen Healthcare vs. Hana Materials | Aprogen Healthcare vs. TOPMATERIAL LTD | Aprogen Healthcare vs. Lake Materials 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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