Correlation Between Ilji Technology and Aprogen Healthcare
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ilji Technology Co vs. Aprogen Healthcare Games
Performance |
Timeline |
Ilji Technology |
Aprogen Healthcare Games |
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.Ilji Technology vs. LG Display | Ilji Technology vs. Hyundai Motor | Ilji Technology vs. Hyundai Motor Co | Ilji Technology vs. Hyundai Motor Co |
Aprogen Healthcare vs. Dongsin Engineering Construction | Aprogen Healthcare vs. Doosan Fuel Cell | Aprogen Healthcare vs. Daishin Balance 1 | Aprogen Healthcare vs. Total Soft Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |