Correlation Between Aprogen Healthcare and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting, you can compare the effects of market volatilities on Aprogen Healthcare and Taegu Broadcasting 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 Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Taegu Broadcasting.
Diversification Opportunities for Aprogen Healthcare and Taegu Broadcasting
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Taegu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting 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 Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Taegu Broadcasting
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Taegu Broadcasting. In addition to that, Aprogen Healthcare is 2.66 times more volatile than Taegu Broadcasting. It trades about -0.03 of its total potential returns per unit of risk. Taegu Broadcasting is currently generating about -0.01 per unit of volatility. If you would invest 99,227 in Taegu Broadcasting on November 27, 2024 and sell it today you would lose (14,427) from holding Taegu Broadcasting or give up 14.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Taegu Broadcasting
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Taegu Broadcasting |
Aprogen Healthcare and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Taegu Broadcasting
The main advantage of trading using opposite Aprogen Healthcare and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| Aprogen Healthcare vs. GS Retail Co | Aprogen Healthcare vs. Lotte Fine Chemical | Aprogen Healthcare vs. Sung Bo Chemicals | Aprogen Healthcare vs. SK Chemicals Co |
| Taegu Broadcasting vs. Samji Electronics Co | Taegu Broadcasting vs. Sungmoon Electronics Co | Taegu Broadcasting vs. Samwha Electronics Co | Taegu Broadcasting vs. Daejung Chemicals Metals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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