Correlation Between Aprogen Healthcare and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal Co, you can compare the effects of market volatilities on Aprogen Healthcare and Seoyon Topmetal 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 Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Seoyon Topmetal.
Diversification Opportunities for Aprogen Healthcare and Seoyon Topmetal
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aprogen and Seoyon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal 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 Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Seoyon Topmetal
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 3.85 times more return on investment than Seoyon Topmetal. However, Aprogen Healthcare is 3.85 times more volatile than Seoyon Topmetal Co. It trades about 0.12 of its potential returns per unit of risk. Seoyon Topmetal Co is currently generating about 0.29 per unit of risk. If you would invest 45,600 in Aprogen Healthcare Games on October 11, 2024 and sell it today you would earn a total of 5,700 from holding Aprogen Healthcare Games or generate 12.5% 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. Seoyon Topmetal Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Seoyon Topmetal |
Aprogen Healthcare and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Seoyon Topmetal
The main advantage of trading using opposite Aprogen Healthcare and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| Aprogen Healthcare vs. LG Household Healthcare | Aprogen Healthcare vs. Pureun Mutual Savings | Aprogen Healthcare vs. Handok Clean Tech | Aprogen Healthcare vs. DB Financial Investment |
| Seoyon Topmetal vs. iNtRON Biotechnology | Seoyon Topmetal vs. Aprogen Healthcare Games | Seoyon Topmetal vs. InnoTherapy | Seoyon Topmetal vs. Eugene Technology CoLtd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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