Correlation Between Aprogen Healthcare and Dongwon System
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Dongwon System 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 Dongwon System 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 Dongwon System, you can compare the effects of market volatilities on Aprogen Healthcare and Dongwon System 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 Dongwon System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Dongwon System.
Diversification Opportunities for Aprogen Healthcare and Dongwon System
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aprogen and Dongwon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Dongwon System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwon System 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 Dongwon System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwon System has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Dongwon System go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Dongwon System
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Dongwon System. In addition to that, Aprogen Healthcare is 1.45 times more volatile than Dongwon System. It trades about -0.03 of its total potential returns per unit of risk. Dongwon System is currently generating about 0.02 per unit of volatility. If you would invest 3,822,635 in Dongwon System on September 21, 2024 and sell it today you would earn a total of 222,365 from holding Dongwon System or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Dongwon System
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Dongwon System |
Aprogen Healthcare and Dongwon System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Dongwon System
The main advantage of trading using opposite Aprogen Healthcare and Dongwon System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Dongwon System 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 Dongwon System will offset losses from the drop in Dongwon System's long position.| Aprogen Healthcare vs. SV Investment | Aprogen Healthcare vs. Nh Investment And | Aprogen Healthcare vs. Samyang Foods Co | Aprogen Healthcare vs. Samyung Trading Co |
| Dongwon System vs. CU Medical Systems | Dongwon System vs. Netmarble Games Corp | Dongwon System vs. Sangsin Energy Display | Dongwon System vs. Aprogen Healthcare Games |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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