Correlation Between Aprogen Healthcare and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Jinro Distillers 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 Jinro Distillers 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 Jinro Distillers Co, you can compare the effects of market volatilities on Aprogen Healthcare and Jinro Distillers 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 Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Jinro Distillers.
Diversification Opportunities for Aprogen Healthcare and Jinro Distillers
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aprogen and Jinro is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers 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 Jinro Distillers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinro Distillers has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Jinro Distillers go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Jinro Distillers
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Jinro Distillers. In addition to that, Aprogen Healthcare is 8.19 times more volatile than Jinro Distillers Co. It trades about -0.33 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.05 per unit of volatility. If you would invest 1,713,000 in Jinro Distillers Co on November 18, 2024 and sell it today you would earn a total of 4,000 from holding Jinro Distillers Co or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Jinro Distillers Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Jinro Distillers |
Aprogen Healthcare and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Jinro Distillers
The main advantage of trading using opposite Aprogen Healthcare and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Jinro Distillers 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 Jinro Distillers will offset losses from the drop in Jinro Distillers' long position.| Aprogen Healthcare vs. PH Tech Co | Aprogen Healthcare vs. Daesung Hi Tech Co | Aprogen Healthcare vs. LG Display Co | Aprogen Healthcare vs. Hanyang Digitech Co |
| Jinro Distillers vs. Lotte Energy Materials | Jinro Distillers vs. Kbi Metal Co | Jinro Distillers vs. Hankook Furniture Co | Jinro Distillers vs. Dongil Metal 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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