Correlation Between Aprogen Healthcare and Osang Healthcare
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Osang Healthcare 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 Osang Healthcare 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 Osang Healthcare Co,Ltd, you can compare the effects of market volatilities on Aprogen Healthcare and Osang Healthcare 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 Osang Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Osang Healthcare.
Diversification Opportunities for Aprogen Healthcare and Osang Healthcare
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aprogen and Osang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Osang Healthcare Co,Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osang Healthcare Co,Ltd 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 Osang Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osang Healthcare Co,Ltd has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Osang Healthcare go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Osang Healthcare
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.87 times more return on investment than Osang Healthcare. However, Aprogen Healthcare is 1.87 times more volatile than Osang Healthcare Co,Ltd. It trades about -0.12 of its potential returns per unit of risk. Osang Healthcare Co,Ltd is currently generating about -0.28 per unit of risk. If you would invest 52,700 in Aprogen Healthcare Games on September 1, 2024 and sell it today you would lose (6,900) from holding Aprogen Healthcare Games or give up 13.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Osang Healthcare Co,Ltd
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Osang Healthcare Co,Ltd |
Aprogen Healthcare and Osang Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Osang Healthcare
The main advantage of trading using opposite Aprogen Healthcare and Osang Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Osang Healthcare 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 Osang Healthcare will offset losses from the drop in Osang Healthcare'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 |
| Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. LG Energy Solution | Osang Healthcare vs. SK Hynix |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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