Correlation Between Aprogen Healthcare and LG Household
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and LG Household 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 LG Household 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 LG Household Healthcare, you can compare the effects of market volatilities on Aprogen Healthcare and LG Household 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 LG Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and LG Household.
Diversification Opportunities for Aprogen Healthcare and LG Household
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aprogen and 051900 is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and LG Household Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Household Healthcare 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 LG Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Household Healthcare has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and LG Household go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and LG Household
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.69 times more return on investment than LG Household. However, Aprogen Healthcare is 1.69 times more volatile than LG Household Healthcare. It trades about 0.0 of its potential returns per unit of risk. LG Household Healthcare is currently generating about 0.0 per unit of risk. If you would invest 60,700 in Aprogen Healthcare Games on October 24, 2024 and sell it today you would lose (8,500) from holding Aprogen Healthcare Games or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. LG Household Healthcare
Performance |
| Timeline |
| Aprogen Healthcare Games |
| LG Household Healthcare |
Aprogen Healthcare and LG Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and LG Household
The main advantage of trading using opposite Aprogen Healthcare and LG Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, LG Household 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 LG Household will offset losses from the drop in LG Household's long position.| Aprogen Healthcare vs. Hyundai Green Food | Aprogen Healthcare vs. Seoul Food Industrial | Aprogen Healthcare vs. Dongbu Insurance Co | Aprogen Healthcare vs. Sajo Seafood |
| LG Household vs. Ssangyong Information Communication | LG Household vs. Mobile Appliance | LG Household vs. Automobile Pc | LG Household vs. Innowireless 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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