Correlation Between Aprogen Healthcare and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Puloon Technology 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 Puloon Technology 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 Puloon Technology, you can compare the effects of market volatilities on Aprogen Healthcare and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Puloon Technology.
Diversification Opportunities for Aprogen Healthcare and Puloon Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aprogen and Puloon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Puloon Technology go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Puloon Technology
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Puloon Technology. In addition to that, Aprogen Healthcare is 1.33 times more volatile than Puloon Technology. It trades about -0.03 of its total potential returns per unit of risk. Puloon Technology is currently generating about 0.01 per unit of volatility. If you would invest 881,915 in Puloon Technology on November 27, 2024 and sell it today you would lose (130,915) from holding Puloon Technology or give up 14.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.08% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Puloon Technology
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Puloon Technology |
Aprogen Healthcare and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Puloon Technology
The main advantage of trading using opposite Aprogen Healthcare and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Aprogen Healthcare vs. GS Retail Co | Aprogen Healthcare vs. Lotte Fine Chemical | Aprogen Healthcare vs. Sung Bo Chemicals | Aprogen Healthcare vs. SK Chemicals Co |
| Puloon Technology vs. LG Household Healthcare | Puloon Technology vs. Korea Investment Holdings | Puloon Technology vs. INFINITT Healthcare Co | Puloon Technology vs. SBI Investment KOREA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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