Correlation Between Aprogen Healthcare and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Narae Nanotech 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 Narae Nanotech 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 Narae Nanotech Corp, you can compare the effects of market volatilities on Aprogen Healthcare and Narae Nanotech 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 Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Narae Nanotech.
Diversification Opportunities for Aprogen Healthcare and Narae Nanotech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Narae is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp 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 Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Narae Nanotech go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Narae Nanotech
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Narae Nanotech. In addition to that, Aprogen Healthcare is 1.13 times more volatile than Narae Nanotech Corp. It trades about -0.04 of its total potential returns per unit of risk. Narae Nanotech Corp is currently generating about 0.07 per unit of volatility. If you would invest 344,500 in Narae Nanotech Corp on October 14, 2024 and sell it today you would earn a total of 15,500 from holding Narae Nanotech Corp or generate 4.5% 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. Narae Nanotech Corp
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Narae Nanotech Corp |
Aprogen Healthcare and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Narae Nanotech
The main advantage of trading using opposite Aprogen Healthcare and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Aprogen Healthcare vs. EBEST Investment Securities | Aprogen Healthcare vs. Golden Bridge Investment | Aprogen Healthcare vs. Daejung Chemicals Metals | Aprogen Healthcare vs. Taegu Broadcasting |
| Narae Nanotech vs. Aprogen Healthcare Games | Narae Nanotech vs. LEENO Industrial | Narae Nanotech vs. Formetal Co | Narae Nanotech vs. Hwasung Industrial Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |