Correlation Between Shinsegae Food and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food 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 Shinsegae Food and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and Aprogen Healthcare Games, you can compare the effects of market volatilities on Shinsegae Food 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 Shinsegae Food with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Aprogen Healthcare.
Diversification Opportunities for Shinsegae Food and Aprogen Healthcare
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinsegae and Aprogen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food i.e., Shinsegae Food and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Shinsegae Food and Aprogen Healthcare
Assuming the 90 days trading horizon Shinsegae Food is expected to generate 0.33 times more return on investment than Aprogen Healthcare. However, Shinsegae Food is 2.99 times less risky than Aprogen Healthcare. It trades about -0.27 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 3,450,000 in Shinsegae Food on September 1, 2024 and sell it today you would lose (300,000) from holding Shinsegae Food or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Shinsegae Food |
| Aprogen Healthcare Games |
Shinsegae Food and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Aprogen Healthcare
The main advantage of trading using opposite Shinsegae Food and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food 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.| Shinsegae Food vs. LG Display | Shinsegae Food vs. Hyundai Motor | Shinsegae Food vs. Hyundai Motor Co | Shinsegae Food 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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