Correlation Between Aprogen Healthcare and Digital Imaging
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Digital Imaging 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 Digital Imaging 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 Digital Imaging Technology, you can compare the effects of market volatilities on Aprogen Healthcare and Digital Imaging 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 Digital Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Digital Imaging.
Diversification Opportunities for Aprogen Healthcare and Digital Imaging
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aprogen and Digital is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Digital Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Imaging Tech 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 Digital Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Imaging Tech has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Digital Imaging go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Digital Imaging
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Digital Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 1.05 times less risky than Digital Imaging. The stock trades about -0.03 of its potential returns per unit of risk. The Digital Imaging Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 542,668 in Digital Imaging Technology on September 25, 2024 and sell it today you would earn a total of 764,332 from holding Digital Imaging Technology or generate 140.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Digital Imaging Technology
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Digital Imaging Tech |
Aprogen Healthcare and Digital Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Digital Imaging
The main advantage of trading using opposite Aprogen Healthcare and Digital Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Digital Imaging 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 Digital Imaging will offset losses from the drop in Digital Imaging'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 |
| Digital Imaging vs. MetaLabs Co | Digital Imaging vs. Taegu Broadcasting | Digital Imaging vs. Korea Computer | Digital Imaging vs. Jeong Moon Information |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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