Correlation Between Aprogen Healthcare and Chin Yang
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Chin Yang 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 Chin Yang 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 Chin Yang Chemical, you can compare the effects of market volatilities on Aprogen Healthcare and Chin Yang 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 Chin Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Chin Yang.
Diversification Opportunities for Aprogen Healthcare and Chin Yang
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aprogen and Chin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Chin Yang Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chin Yang Chemical 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 Chin Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chin Yang Chemical has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Chin Yang go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Chin Yang
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.1 times more return on investment than Chin Yang. However, Aprogen Healthcare is 1.1 times more volatile than Chin Yang Chemical. It trades about 0.06 of its potential returns per unit of risk. Chin Yang Chemical is currently generating about -0.18 per unit of risk. If you would invest 53,600 in Aprogen Healthcare Games on August 29, 2024 and sell it today you would earn a total of 1,800 from holding Aprogen Healthcare Games or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Chin Yang Chemical
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Chin Yang Chemical |
Aprogen Healthcare and Chin Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Chin Yang
The main advantage of trading using opposite Aprogen Healthcare and Chin Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Chin Yang 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 Chin Yang will offset losses from the drop in Chin Yang's long position.| Aprogen Healthcare vs. NewFlex Technology Co | Aprogen Healthcare vs. Ilji Technology Co | Aprogen Healthcare vs. Green Cross Medical | Aprogen Healthcare vs. Eugene Technology CoLtd |
| Chin Yang vs. Dongbang Transport Logistics | Chin Yang vs. Woori Technology Investment | Chin Yang vs. Korea Investment Holdings | Chin Yang vs. Kukil Metal 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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