Correlation Between SBI Investment and Aprogen KIC
Can any of the company-specific risk be diversified away by investing in both SBI Investment and Aprogen KIC 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 SBI Investment and Aprogen KIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Investment KOREA and Aprogen KIC, you can compare the effects of market volatilities on SBI Investment and Aprogen KIC 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 SBI Investment with a short position of Aprogen KIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Investment and Aprogen KIC.
Diversification Opportunities for SBI Investment and Aprogen KIC
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBI and Aprogen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SBI Investment KOREA and Aprogen KIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen KIC and SBI Investment 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 SBI Investment KOREA are associated (or correlated) with Aprogen KIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen KIC has no effect on the direction of SBI Investment i.e., SBI Investment and Aprogen KIC go up and down completely randomly.
Pair Corralation between SBI Investment and Aprogen KIC
Assuming the 90 days trading horizon SBI Investment KOREA is expected to generate 0.66 times more return on investment than Aprogen KIC. However, SBI Investment KOREA is 1.53 times less risky than Aprogen KIC. It trades about 0.02 of its potential returns per unit of risk. Aprogen KIC is currently generating about -0.08 per unit of risk. If you would invest 71,800 in SBI Investment KOREA on August 29, 2024 and sell it today you would earn a total of 600.00 from holding SBI Investment KOREA or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Investment KOREA vs. Aprogen KIC
Performance |
| Timeline |
| SBI Investment KOREA |
| Aprogen KIC |
SBI Investment and Aprogen KIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Investment and Aprogen KIC
The main advantage of trading using opposite SBI Investment and Aprogen KIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Investment position performs unexpectedly, Aprogen KIC 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 KIC will offset losses from the drop in Aprogen KIC's long position.| SBI Investment vs. Sunny Electronics Corp | SBI Investment vs. DAEDUCK ELECTRONICS CoLtd | SBI Investment vs. Genie Music | SBI Investment vs. Anam Electronics Co |
| Aprogen KIC vs. Hana Materials | Aprogen KIC vs. Miwon Chemical | Aprogen KIC vs. Top Material Co | Aprogen KIC vs. Kukdo Chemical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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