Correlation Between Aprogen Healthcare and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Aprogen Healthcare and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Shinsegae Food.
Diversification Opportunities for Aprogen Healthcare and Shinsegae Food
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aprogen and Shinsegae is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Shinsegae Food go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Shinsegae Food
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Shinsegae Food. In addition to that, Aprogen Healthcare is 2.99 times more volatile than Shinsegae Food. It trades about -0.12 of its total potential returns per unit of risk. Shinsegae Food is currently generating about -0.27 per unit of volatility. If you would invest 3,450,000 in Shinsegae Food on September 1, 2024 and sell it today you would lose (300,000) from holding Shinsegae Food or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Shinsegae Food
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Shinsegae Food |
Aprogen Healthcare and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Shinsegae Food
The main advantage of trading using opposite Aprogen Healthcare and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Aprogen Healthcare vs. Dongsin Engineering Construction | Aprogen Healthcare vs. Doosan Fuel Cell | Aprogen Healthcare vs. Daishin Balance 1 | Aprogen Healthcare vs. Total Soft Bank |
| Shinsegae Food vs. LG Display | Shinsegae Food vs. Hyundai Motor | Shinsegae Food vs. Hyundai Motor Co | Shinsegae Food vs. Hyundai Motor 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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