Correlation Between Aprogen Healthcare and Lotte Non
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Lotte Non 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 Aprogen Healthcare and Lotte Non into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aprogen Healthcare Games and Lotte Non Life Insurance, you can compare the effects of market volatilities on Aprogen Healthcare and Lotte Non 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 Aprogen Healthcare with a short position of Lotte Non. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Lotte Non.
Diversification Opportunities for Aprogen Healthcare and Lotte Non
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aprogen and Lotte is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Lotte Non Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Non Life and Aprogen Healthcare 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 Aprogen Healthcare Games are associated (or correlated) with Lotte Non. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Non Life has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Lotte Non go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Lotte Non
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.36 times more return on investment than Lotte Non. However, Aprogen Healthcare is 1.36 times more volatile than Lotte Non Life Insurance. It trades about 0.06 of its potential returns per unit of risk. Lotte Non Life Insurance is currently generating about -0.15 per unit of risk. If you would invest 53,600 in Aprogen Healthcare Games on August 29, 2024 and sell it today you would earn a total of 1,800 from holding Aprogen Healthcare Games or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Lotte Non Life Insurance
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Lotte Non Life |
Aprogen Healthcare and Lotte Non Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Lotte Non
The main advantage of trading using opposite Aprogen Healthcare and Lotte Non positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Lotte Non 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 Lotte Non will offset losses from the drop in Lotte Non's long position.| Aprogen Healthcare vs. NewFlex Technology Co | Aprogen Healthcare vs. Ilji Technology Co | Aprogen Healthcare vs. Green Cross Medical | Aprogen Healthcare vs. Eugene Technology CoLtd |
| Lotte Non vs. AptaBio Therapeutics | Lotte Non vs. Daewoo SBI SPAC | Lotte Non vs. Dream Security co | Lotte Non vs. Microfriend |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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