Correlation Between Ewon Comfortech and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech 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 Ewon Comfortech and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ewon Comfortech Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Ewon Comfortech 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 Ewon Comfortech with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Aprogen Healthcare.
Diversification Opportunities for Ewon Comfortech and Aprogen Healthcare
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ewon and Aprogen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech 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 Ewon Comfortech 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 Ewon Comfortech 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 Ewon Comfortech i.e., Ewon Comfortech and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Aprogen Healthcare
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the Aprogen Healthcare. In addition to that, Ewon Comfortech is 1.09 times more volatile than Aprogen Healthcare Games. It trades about -0.06 of its total potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.03 per unit of volatility. If you would invest 151,500 in Aprogen Healthcare Games on November 4, 2024 and sell it today you would lose (102,100) from holding Aprogen Healthcare Games or give up 67.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.08% |
| Values | Daily Returns |
Ewon Comfortech Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Ewon Comfortech |
| Aprogen Healthcare Games |
Ewon Comfortech and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and Aprogen Healthcare
The main advantage of trading using opposite Ewon Comfortech and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech 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.| Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Hyundai Motor Co | Ewon Comfortech vs. Hyundai Motor |
| Aprogen Healthcare vs. Puloon Technology | Aprogen Healthcare vs. RF Materials Co | Aprogen Healthcare vs. Kolon Plastics | Aprogen Healthcare vs. PH 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |