Correlation Between Ilji Technology and APro
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and APro 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 APro 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 APro Co, you can compare the effects of market volatilities on Ilji Technology and APro 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 APro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and APro.
Diversification Opportunities for Ilji Technology and APro
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ilji and APro is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and APro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APro 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 APro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APro has no effect on the direction of Ilji Technology i.e., Ilji Technology and APro go up and down completely randomly.
Pair Corralation between Ilji Technology and APro
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 0.67 times more return on investment than APro. However, Ilji Technology Co is 1.49 times less risky than APro. It trades about 0.5 of its potential returns per unit of risk. APro Co is currently generating about -0.04 per unit of risk. If you would invest 353,000 in Ilji Technology Co on October 27, 2024 and sell it today you would earn a total of 57,000 from holding Ilji Technology Co or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. APro Co
Performance |
| Timeline |
| Ilji Technology |
| APro |
Ilji Technology and APro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and APro
The main advantage of trading using opposite Ilji Technology and APro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, APro 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 APro will offset losses from the drop in APro's long position.| Ilji Technology vs. Hironic Co | Ilji Technology vs. SCI Information Service | Ilji Technology vs. Nature and Environment | Ilji Technology vs. Hankuk Steel Wire |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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