Correlation Between Aprogen Healthcare and Han Kook
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Han Kook 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 Han Kook 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 Han Kook Steel, you can compare the effects of market volatilities on Aprogen Healthcare and Han Kook 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 Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Han Kook.
Diversification Opportunities for Aprogen Healthcare and Han Kook
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aprogen and Han is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel 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 Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Han Kook go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Han Kook
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Han Kook. In addition to that, Aprogen Healthcare is 1.41 times more volatile than Han Kook Steel. It trades about -0.03 of its total potential returns per unit of risk. Han Kook Steel is currently generating about -0.03 per unit of volatility. If you would invest 357,500 in Han Kook Steel on October 16, 2024 and sell it today you would lose (168,400) from holding Han Kook Steel or give up 47.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Han Kook Steel
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Han Kook Steel |
Aprogen Healthcare and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Han Kook
The main advantage of trading using opposite Aprogen Healthcare and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| Aprogen Healthcare vs. Songwon Industrial Co | Aprogen Healthcare vs. Korea Information Communications | Aprogen Healthcare vs. Hyundai Industrial Co | Aprogen Healthcare vs. Myoung Shin Industrial |
| Han Kook vs. Osang Healthcare Co,Ltd | Han Kook vs. CKH Food Health | Han Kook vs. LG Household Healthcare | Han Kook 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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