Correlation Between Industrial Bank and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Industrial Bank 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 Industrial Bank and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Bank and Aprogen Healthcare Games, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Aprogen Healthcare.
Diversification Opportunities for Industrial Bank and Aprogen Healthcare
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Aprogen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank 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 Industrial Bank 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 Industrial Bank 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 Industrial Bank i.e., Industrial Bank and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Industrial Bank and Aprogen Healthcare
Assuming the 90 days trading horizon Industrial Bank is expected to generate 0.28 times more return on investment than Aprogen Healthcare. However, Industrial Bank is 3.55 times less risky than Aprogen Healthcare. It trades about 0.08 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.05 per unit of risk. If you would invest 960,139 in Industrial Bank on August 24, 2024 and sell it today you would earn a total of 515,861 from holding Industrial Bank or generate 53.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Industrial Bank vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Industrial Bank |
| Aprogen Healthcare Games |
Industrial Bank and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Aprogen Healthcare
The main advantage of trading using opposite Industrial Bank and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Korea New Network | Industrial Bank vs. ICD Co | Industrial Bank vs. DYPNF CoLtd | Industrial Bank vs. Busan Industrial Co |
| Aprogen Healthcare vs. Seoul Semiconductor Co | Aprogen Healthcare vs. SFA Engineering | Aprogen Healthcare vs. Busan Industrial Co | Aprogen Healthcare vs. Busan Ind |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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