Correlation Between Aprogen Healthcare and Hwangkum Steel
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Hwangkum Steel 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 Hwangkum Steel 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 Hwangkum Steel Technology, you can compare the effects of market volatilities on Aprogen Healthcare and Hwangkum Steel 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 Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Hwangkum Steel.
Diversification Opportunities for Aprogen Healthcare and Hwangkum Steel
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aprogen and Hwangkum is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology 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 Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Hwangkum Steel go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Hwangkum Steel
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Hwangkum Steel. In addition to that, Aprogen Healthcare is 4.31 times more volatile than Hwangkum Steel Technology. It trades about -0.08 of its total potential returns per unit of risk. Hwangkum Steel Technology is currently generating about 0.11 per unit of volatility. If you would invest 490,000 in Hwangkum Steel Technology on November 4, 2024 and sell it today you would earn a total of 4,500 from holding Hwangkum Steel Technology or generate 0.92% 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. Hwangkum Steel Technology
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Hwangkum Steel Technology |
Aprogen Healthcare and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Hwangkum Steel
The main advantage of trading using opposite Aprogen Healthcare and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| Aprogen Healthcare vs. Anam Electronics Co | Aprogen Healthcare vs. Formetal Co | Aprogen Healthcare vs. Lee Ku Industrial | Aprogen Healthcare vs. Industrial Bank |
| Hwangkum Steel vs. Bookook Steel | Hwangkum Steel vs. Wonil Special Steel | Hwangkum Steel vs. Insung Information Co | Hwangkum Steel vs. Dong A Steel Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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