Correlation Between Aprogen Healthcare and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Aprogen Healthcare and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Duksan Hi.
Diversification Opportunities for Aprogen Healthcare and Duksan Hi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Duksan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Duksan Hi go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Duksan Hi
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.87 times more return on investment than Duksan Hi. However, Aprogen Healthcare is 1.87 times more volatile than Duksan Hi Metal. It trades about 0.05 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about 0.02 per unit of risk. If you would invest 48,000 in Aprogen Healthcare Games on October 17, 2024 and sell it today you would earn a total of 2,000 from holding Aprogen Healthcare Games or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Duksan Hi Metal
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Duksan Hi Metal |
Aprogen Healthcare and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Duksan Hi
The main advantage of trading using opposite Aprogen Healthcare and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Aprogen Healthcare vs. Songwon Industrial Co | Aprogen Healthcare vs. Korea Information Communications | Aprogen Healthcare vs. Hyundai Industrial Co | Aprogen Healthcare vs. Myoung Shin Industrial |
| Duksan Hi vs. Aprogen Healthcare Games | Duksan Hi vs. Nable Communications | Duksan Hi vs. Youngsin Metal Industrial | Duksan Hi vs. Digital Power Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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