Correlation Between Aprogen Healthcare and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Aprogen Healthcare and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Hanwha InvestmentSecuri.
Diversification Opportunities for Aprogen Healthcare and Hanwha InvestmentSecuri
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Hanwha is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Hanwha InvestmentSecuri. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 1.02 times less risky than Hanwha InvestmentSecuri. The stock trades about -0.1 of its potential returns per unit of risk. The Hanwha InvestmentSecurities Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 341,000 in Hanwha InvestmentSecurities Co on September 3, 2024 and sell it today you would earn a total of 12,500 from holding Hanwha InvestmentSecurities Co or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Hanwha InvestmentSecuri |
Aprogen Healthcare and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Hanwha InvestmentSecuri
The main advantage of trading using opposite Aprogen Healthcare and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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