Correlation Between Shinsegae Engineering and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Shinsegae Engineering 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 Engineering 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 Engineering Construction and Aprogen Healthcare Games, you can compare the effects of market volatilities on Shinsegae Engineering 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 Engineering with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Engineering and Aprogen Healthcare.
Diversification Opportunities for Shinsegae Engineering and Aprogen Healthcare
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and Aprogen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Engineering Construc 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 Engineering 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 Engineering Construction 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 Engineering i.e., Shinsegae Engineering and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Shinsegae Engineering and Aprogen Healthcare
Assuming the 90 days trading horizon Shinsegae Engineering is expected to generate 39.41 times less return on investment than Aprogen Healthcare. But when comparing it to its historical volatility, Shinsegae Engineering Construction is 87.77 times less risky than Aprogen Healthcare. It trades about 0.28 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 45,600 in Aprogen Healthcare Games on October 11, 2024 and sell it today you would earn a total of 5,700 from holding Aprogen Healthcare Games or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Engineering Construc vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Shinsegae Engineering |
| Aprogen Healthcare Games |
Shinsegae Engineering and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Engineering and Aprogen Healthcare
The main advantage of trading using opposite Shinsegae Engineering and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Engineering 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 Engineering vs. AptaBio Therapeutics | Shinsegae Engineering vs. Daewoo SBI SPAC | Shinsegae Engineering vs. Dream Security co | Shinsegae Engineering vs. Microfriend |
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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