Correlation Between Aprogen Healthcare and Playgram
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Playgram 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 Playgram 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 Playgram Co, you can compare the effects of market volatilities on Aprogen Healthcare and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Playgram.
Diversification Opportunities for Aprogen Healthcare and Playgram
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Playgram is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Playgram go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Playgram
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Playgram. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 1.49 times less risky than Playgram. The stock trades about -0.05 of its potential returns per unit of risk. The Playgram Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 58,200 in Playgram Co on September 1, 2024 and sell it today you would lose (21,300) from holding Playgram Co or give up 36.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Playgram Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Playgram |
Aprogen Healthcare and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Playgram
The main advantage of trading using opposite Aprogen Healthcare and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram'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 |
| Playgram vs. PI Advanced Materials | Playgram vs. Youngchang Chemical Co | Playgram vs. Namhae Chemical | Playgram vs. Iljin Materials 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.
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