Correlation Between Ilji Technology and Aprogen Healthcare

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Can any of the company-specific risk be diversified away by investing in both Ilji Technology 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 Ilji Technology and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Ilji Technology 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 Ilji Technology with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Aprogen Healthcare.

Diversification Opportunities for Ilji Technology and Aprogen Healthcare

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ilji and Aprogen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology 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 Ilji Technology 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 Ilji Technology 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 Ilji Technology i.e., Ilji Technology and Aprogen Healthcare go up and down completely randomly.

Pair Corralation between Ilji Technology and Aprogen Healthcare

Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 0.47 times more return on investment than Aprogen Healthcare. However, Ilji Technology Co is 2.11 times less risky than Aprogen Healthcare. It trades about -0.19 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.12 per unit of risk. If you would invest  414,500  in Ilji Technology Co on September 1, 2024 and sell it today you would lose (36,500) from holding Ilji Technology Co or give up 8.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ilji Technology Co  vs.  Aprogen Healthcare Games

 Performance 
       Timeline  
Ilji Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ilji Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Aprogen Healthcare Games 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aprogen Healthcare Games has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Ilji Technology and Aprogen Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ilji Technology and Aprogen Healthcare

The main advantage of trading using opposite Ilji Technology and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology 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.
The idea behind Ilji Technology Co and Aprogen Healthcare Games pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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