Correlation Between Dreamus and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Dreamus 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 Dreamus and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreamus Company and Aprogen Healthcare Games, you can compare the effects of market volatilities on Dreamus 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 Dreamus with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreamus and Aprogen Healthcare.
Diversification Opportunities for Dreamus and Aprogen Healthcare
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dreamus and Aprogen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dreamus Company 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 Dreamus 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 Dreamus Company 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 Dreamus i.e., Dreamus and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Dreamus and Aprogen Healthcare
Assuming the 90 days trading horizon Dreamus Company is expected to generate 0.85 times more return on investment than Aprogen Healthcare. However, Dreamus Company is 1.17 times less risky than Aprogen Healthcare. It trades about 0.08 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.13 per unit of risk. If you would invest 170,300 in Dreamus Company on October 20, 2024 and sell it today you would earn a total of 6,000 from holding Dreamus Company or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Dreamus Company vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Dreamus Company |
| Aprogen Healthcare Games |
Dreamus and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreamus and Aprogen Healthcare
The main advantage of trading using opposite Dreamus and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreamus 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.| Dreamus vs. Samsung Card Co | Dreamus vs. EBEST Investment Securities | Dreamus vs. Koh Young Technology | Dreamus vs. Hansol Chemica |
| Aprogen Healthcare vs. Hansol Homedeco Co | Aprogen Healthcare vs. Kukil Metal Co | Aprogen Healthcare vs. Dongil Metal Co | Aprogen Healthcare vs. Kolon Plastics |
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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