Correlation Between Aprogen Healthcare and Hankook Furniture
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture Co, you can compare the effects of market volatilities on Aprogen Healthcare and Hankook Furniture 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 Hankook Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Hankook Furniture.
Diversification Opportunities for Aprogen Healthcare and Hankook Furniture
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Hankook is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Hankook Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankook Furniture 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 Hankook Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankook Furniture has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Hankook Furniture go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Hankook Furniture
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Hankook Furniture. In addition to that, Aprogen Healthcare is 3.44 times more volatile than Hankook Furniture Co. It trades about -0.04 of its total potential returns per unit of risk. Hankook Furniture Co is currently generating about -0.01 per unit of volatility. If you would invest 433,604 in Hankook Furniture Co on September 1, 2024 and sell it today you would lose (28,104) from holding Hankook Furniture Co or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.84% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Hankook Furniture Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Hankook Furniture |
Aprogen Healthcare and Hankook Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Hankook Furniture
The main advantage of trading using opposite Aprogen Healthcare and Hankook Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Hankook Furniture 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 Hankook Furniture will offset losses from the drop in Hankook Furniture's long position.| Aprogen Healthcare vs. Dongsin Engineering Construction | Aprogen Healthcare vs. Doosan Fuel Cell | Aprogen Healthcare vs. Daishin Balance 1 | Aprogen Healthcare vs. Total Soft Bank |
| Hankook Furniture vs. LG Display | Hankook Furniture vs. Hyundai Motor | Hankook Furniture vs. Hyundai Motor Co | Hankook Furniture vs. Hyundai Motor 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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