Correlation Between Korea New and Aprogen KIC
Can any of the company-specific risk be diversified away by investing in both Korea New and Aprogen KIC 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 Korea New and Aprogen KIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Aprogen KIC, you can compare the effects of market volatilities on Korea New and Aprogen KIC 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 Korea New with a short position of Aprogen KIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Aprogen KIC.
Diversification Opportunities for Korea New and Aprogen KIC
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Aprogen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and Aprogen KIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen KIC and Korea New 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 Korea New Network are associated (or correlated) with Aprogen KIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen KIC has no effect on the direction of Korea New i.e., Korea New and Aprogen KIC go up and down completely randomly.
Pair Corralation between Korea New and Aprogen KIC
Assuming the 90 days trading horizon Korea New Network is expected to generate 0.43 times more return on investment than Aprogen KIC. However, Korea New Network is 2.32 times less risky than Aprogen KIC. It trades about 0.0 of its potential returns per unit of risk. Aprogen KIC is currently generating about 0.0 per unit of risk. If you would invest 89,669 in Korea New Network on December 1, 2024 and sell it today you would lose (10,269) from holding Korea New Network or give up 11.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea New Network vs. Aprogen KIC
Performance |
| Timeline |
| Korea New Network |
| Aprogen KIC |
Korea New and Aprogen KIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Aprogen KIC
The main advantage of trading using opposite Korea New and Aprogen KIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New position performs unexpectedly, Aprogen KIC 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 KIC will offset losses from the drop in Aprogen KIC's long position.| Korea New vs. Mirai Semiconductors Co | Korea New vs. Cloud Air CoLtd | Korea New vs. Aprogen Healthcare Games | Korea New vs. Jin Air Co |
| Aprogen KIC vs. Jeju Beer Co | Aprogen KIC vs. Taegu Broadcasting | Aprogen KIC vs. Korea Information Communications | Aprogen KIC vs. Hankook Furniture 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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