Correlation Between Aprogen Healthcare and System
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and System 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 System 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 System and Application, you can compare the effects of market volatilities on Aprogen Healthcare and System 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 System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and System.
Diversification Opportunities for Aprogen Healthcare and System
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and System is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and System and Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System and Application 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 System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System and Application has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and System go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and System
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the System. In addition to that, Aprogen Healthcare is 1.48 times more volatile than System and Application. It trades about -0.03 of its total potential returns per unit of risk. System and Application is currently generating about -0.01 per unit of volatility. If you would invest 213,652 in System and Application on October 27, 2024 and sell it today you would lose (57,452) from holding System and Application or give up 26.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. System and Application
Performance |
| Timeline |
| Aprogen Healthcare Games |
| System and Application |
Aprogen Healthcare and System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and System
The main advantage of trading using opposite Aprogen Healthcare and System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, System 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 System will offset losses from the drop in System's long position.| Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. SK Hynix | Aprogen Healthcare vs. HMM Co |
| System vs. Sejong Telecom | System vs. Nable Communications | System vs. PJ Metal Co | System vs. Nice Information Telecommunication |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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