Correlation Between Taegu Broadcasting and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting 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 Taegu Broadcasting and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and Aprogen Healthcare Games, you can compare the effects of market volatilities on Taegu Broadcasting 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 Taegu Broadcasting with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and Aprogen Healthcare.
Diversification Opportunities for Taegu Broadcasting and Aprogen Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taegu and Aprogen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting i.e., Taegu Broadcasting and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and Aprogen Healthcare
Assuming the 90 days trading horizon Taegu Broadcasting is expected to generate 0.38 times more return on investment than Aprogen Healthcare. However, Taegu Broadcasting is 2.66 times less risky than Aprogen Healthcare. It trades about -0.01 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.03 per unit of risk. If you would invest 99,227 in Taegu Broadcasting on November 27, 2024 and sell it today you would lose (14,427) from holding Taegu Broadcasting or give up 14.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taegu Broadcasting vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Taegu Broadcasting |
| Aprogen Healthcare Games |
Taegu Broadcasting and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and Aprogen Healthcare
The main advantage of trading using opposite Taegu Broadcasting and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting 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.| Taegu Broadcasting vs. Samji Electronics Co | Taegu Broadcasting vs. Sungmoon Electronics Co | Taegu Broadcasting vs. Samwha Electronics Co | Taegu Broadcasting vs. Daejung Chemicals Metals |
| Aprogen Healthcare vs. GS Retail Co | Aprogen Healthcare vs. Lotte Fine Chemical | Aprogen Healthcare vs. Sung Bo Chemicals | Aprogen Healthcare vs. SK Chemicals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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