Correlation Between Iljin Materials and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Iljin Materials 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 Iljin Materials and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Materials Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Iljin Materials 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 Iljin Materials with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Materials and Aprogen Healthcare.
Diversification Opportunities for Iljin Materials and Aprogen Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iljin and Aprogen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Materials 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 Iljin Materials 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 Iljin Materials 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 Iljin Materials i.e., Iljin Materials and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Iljin Materials and Aprogen Healthcare
Assuming the 90 days trading horizon Iljin Materials is expected to generate 1.07 times less return on investment than Aprogen Healthcare. But when comparing it to its historical volatility, Iljin Materials Co is 1.37 times less risky than Aprogen Healthcare. It trades about 0.18 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 44,700 in Aprogen Healthcare Games on October 8, 2024 and sell it today you would earn a total of 6,300 from holding Aprogen Healthcare Games or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Materials Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Iljin Materials |
| Aprogen Healthcare Games |
Iljin Materials and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Materials and Aprogen Healthcare
The main advantage of trading using opposite Iljin Materials and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Materials 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.| Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. LG Energy Solution | Iljin Materials vs. SK Hynix |
| Aprogen Healthcare vs. Hankook Furniture Co | Aprogen Healthcare vs. Puloon Technology | Aprogen Healthcare vs. Mgame Corp | Aprogen Healthcare vs. Cuckoo Homesys 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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