Correlation Between Aprogen Healthcare and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Aprogen Healthcare and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and BNK Financial.
Diversification Opportunities for Aprogen Healthcare and BNK Financial
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and BNK is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and BNK Financial go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and BNK Financial
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the BNK Financial. In addition to that, Aprogen Healthcare is 2.5 times more volatile than BNK Financial Group. It trades about -0.02 of its total potential returns per unit of risk. BNK Financial Group is currently generating about 0.11 per unit of volatility. If you would invest 1,008,000 in BNK Financial Group on September 27, 2024 and sell it today you would earn a total of 65,000 from holding BNK Financial Group or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. BNK Financial Group
Performance |
| Timeline |
| Aprogen Healthcare Games |
| BNK Financial Group |
Aprogen Healthcare and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and BNK Financial
The main advantage of trading using opposite Aprogen Healthcare and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial'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 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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