Correlation Between FNSTech and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both FNSTech 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 FNSTech and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on FNSTech 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 FNSTech with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and Aprogen Healthcare.
Diversification Opportunities for FNSTech and Aprogen Healthcare
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FNSTech and Aprogen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech Co 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 FNSTech 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 FNSTech Co 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 FNSTech i.e., FNSTech and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between FNSTech and Aprogen Healthcare
Assuming the 90 days trading horizon FNSTech Co is expected to generate 0.88 times more return on investment than Aprogen Healthcare. However, FNSTech Co is 1.14 times less risky than Aprogen Healthcare. It trades about 0.02 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.05 per unit of risk. If you would invest 935,000 in FNSTech Co on August 28, 2024 and sell it today you would lose (20,000) from holding FNSTech Co or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.79% |
| Values | Daily Returns |
FNSTech Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| FNSTech |
| Aprogen Healthcare Games |
FNSTech and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and Aprogen Healthcare
The main advantage of trading using opposite FNSTech and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech 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.| FNSTech vs. POSCO M TECH Co | FNSTech vs. PH Tech Co | FNSTech vs. CU Tech Corp | FNSTech vs. Lotte Data Communication |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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