Correlation Between Dongil Technology and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Dongil Technology 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 Dongil Technology and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Technology and Aprogen Healthcare Games, you can compare the effects of market volatilities on Dongil Technology 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 Dongil Technology with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Technology and Aprogen Healthcare.
Diversification Opportunities for Dongil Technology and Aprogen Healthcare
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongil and Aprogen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Technology 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 Dongil 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 Dongil Technology 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 Dongil Technology i.e., Dongil Technology and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Dongil Technology and Aprogen Healthcare
Assuming the 90 days trading horizon Dongil Technology is expected to generate 0.42 times more return on investment than Aprogen Healthcare. However, Dongil Technology is 2.4 times less risky than Aprogen Healthcare. It trades about -0.03 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.04 per unit of risk. If you would invest 1,156,000 in Dongil Technology on September 3, 2024 and sell it today you would lose (104,000) from holding Dongil Technology or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Technology vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Dongil Technology |
| Aprogen Healthcare Games |
Dongil Technology and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Technology and Aprogen Healthcare
The main advantage of trading using opposite Dongil Technology and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Technology 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.| Dongil Technology vs. Dongsin Engineering Construction | Dongil Technology vs. Doosan Fuel Cell | Dongil Technology vs. Daishin Balance 1 | Dongil Technology vs. Total Soft Bank |
| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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