Correlation Between Aprogen Healthcare and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Jeong Moon 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 Jeong Moon 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 Jeong Moon Information, you can compare the effects of market volatilities on Aprogen Healthcare and Jeong Moon 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 Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Jeong Moon.
Diversification Opportunities for Aprogen Healthcare and Jeong Moon
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aprogen and Jeong is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information 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 Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Jeong Moon go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Jeong Moon
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Jeong Moon. In addition to that, Aprogen Healthcare is 2.25 times more volatile than Jeong Moon Information. It trades about -0.03 of its total potential returns per unit of risk. Jeong Moon Information is currently generating about -0.03 per unit of volatility. If you would invest 118,600 in Jeong Moon Information on October 27, 2024 and sell it today you would lose (35,700) from holding Jeong Moon Information or give up 30.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Jeong Moon Information
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Jeong Moon Information |
Aprogen Healthcare and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Jeong Moon
The main advantage of trading using opposite Aprogen Healthcare and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. SK Hynix | Aprogen Healthcare vs. HMM Co |
| Jeong Moon vs. Samsung Electronics Co | Jeong Moon vs. Samsung Electronics Co | Jeong Moon vs. SK Hynix | Jeong Moon vs. HMM 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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