Correlation Between Aprogen Healthcare and Samsung Card
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Samsung Card 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 Samsung Card 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 Samsung Card Co, you can compare the effects of market volatilities on Aprogen Healthcare and Samsung Card 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 Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Samsung Card.
Diversification Opportunities for Aprogen Healthcare and Samsung Card
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Samsung is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card 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 Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Samsung Card go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Samsung Card
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Samsung Card. In addition to that, Aprogen Healthcare is 2.96 times more volatile than Samsung Card Co. It trades about -0.03 of its total potential returns per unit of risk. Samsung Card Co is currently generating about 0.05 per unit of volatility. If you would invest 2,866,265 in Samsung Card Co on October 12, 2024 and sell it today you would earn a total of 1,123,735 from holding Samsung Card Co or generate 39.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.09% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Samsung Card Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Samsung Card |
Aprogen Healthcare and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Samsung Card
The main advantage of trading using opposite Aprogen Healthcare and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Samsung Card 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 Samsung Card will offset losses from the drop in Samsung Card's long position.| Aprogen Healthcare vs. Seah Steel Corp | Aprogen Healthcare vs. Finebesteel | Aprogen Healthcare vs. BGF Retail Co | Aprogen Healthcare vs. Han Kook Steel |
| Samsung Card vs. LG Household Healthcare | Samsung Card vs. CKH Food Health | Samsung Card vs. DoubleU Games Co | Samsung Card 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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