Correlation Between Aprogen Healthcare and Korea Computer
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Korea Computer 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 Korea Computer 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 Korea Computer, you can compare the effects of market volatilities on Aprogen Healthcare and Korea Computer 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 Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Korea Computer.
Diversification Opportunities for Aprogen Healthcare and Korea Computer
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Korea is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Korea Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer 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 Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Korea Computer go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Korea Computer
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Korea Computer. In addition to that, Aprogen Healthcare is 1.56 times more volatile than Korea Computer. It trades about -0.05 of its total potential returns per unit of risk. Korea Computer is currently generating about 0.03 per unit of volatility. If you would invest 422,071 in Korea Computer on September 4, 2024 and sell it today you would earn a total of 71,429 from holding Korea Computer or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Korea Computer
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Korea Computer |
Aprogen Healthcare and Korea Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Korea Computer
The main advantage of trading using opposite Aprogen Healthcare and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Korea Computer 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 Korea Computer will offset losses from the drop in Korea Computer'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 |
| Korea Computer vs. Aprogen Healthcare Games | Korea Computer vs. Daol Investment Securities | Korea Computer vs. Seoul Semiconductor Co | Korea Computer vs. Korea Investment Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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