Correlation Between Aprogen Healthcare and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Samick Musical 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 Samick Musical 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 Samick Musical Instruments, you can compare the effects of market volatilities on Aprogen Healthcare and Samick Musical 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 Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Samick Musical.
Diversification Opportunities for Aprogen Healthcare and Samick Musical
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aprogen and Samick is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr 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 Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Samick Musical go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Samick Musical
Assuming the 90 days trading horizon Aprogen Healthcare is expected to generate 2.61 times less return on investment than Samick Musical. In addition to that, Aprogen Healthcare is 2.41 times more volatile than Samick Musical Instruments. It trades about 0.04 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.24 per unit of volatility. If you would invest 105,064 in Samick Musical Instruments on October 12, 2024 and sell it today you would earn a total of 11,736 from holding Samick Musical Instruments or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Samick Musical Instruments
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Samick Musical Instr |
Aprogen Healthcare and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Samick Musical
The main advantage of trading using opposite Aprogen Healthcare and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.| Aprogen Healthcare vs. LG Household Healthcare | Aprogen Healthcare vs. Pureun Mutual Savings | Aprogen Healthcare vs. Handok Clean Tech | Aprogen Healthcare vs. DB Financial Investment |
| Samick Musical vs. Hansol Chemical Co | Samick Musical vs. BGF Retail Co | Samick Musical vs. JC Chemical Co | Samick Musical vs. Dongnam Chemical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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