Correlation Between WIZ P and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both WIZ P 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 WIZ P and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIZ P Inc and Aprogen Healthcare Games, you can compare the effects of market volatilities on WIZ P 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 WIZ P with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIZ P and Aprogen Healthcare.
Diversification Opportunities for WIZ P and Aprogen Healthcare
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIZ and Aprogen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding WIZ P Inc 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 WIZ P 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 WIZ P Inc 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 WIZ P i.e., WIZ P and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between WIZ P and Aprogen Healthcare
Assuming the 90 days trading horizon WIZ P Inc is expected to generate 0.4 times more return on investment than Aprogen Healthcare. However, WIZ P Inc is 2.52 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 84,100 in WIZ P Inc on August 28, 2024 and sell it today you would lose (24,300) from holding WIZ P Inc or give up 28.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
WIZ P Inc vs. Aprogen Healthcare Games
Performance |
| Timeline |
| WIZ P Inc |
| Aprogen Healthcare Games |
WIZ P and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIZ P and Aprogen Healthcare
The main advantage of trading using opposite WIZ P and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIZ P 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.| WIZ P vs. Iljin Materials Co | WIZ P vs. TOPMATERIAL LTD | WIZ P vs. Sempio Foods Co | WIZ P vs. CJ Seafood Corp |
| Aprogen Healthcare vs. Korea Real Estate | Aprogen Healthcare vs. Korea Ratings Co | Aprogen Healthcare vs. IQuest Co | Aprogen Healthcare vs. Wonbang Tech 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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