Correlation Between Aprogen Healthcare and Dgb Financial
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Dgb 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 Dgb 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 Dgb Financial, you can compare the effects of market volatilities on Aprogen Healthcare and Dgb 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 Dgb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Dgb Financial.
Diversification Opportunities for Aprogen Healthcare and Dgb Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Dgb is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Dgb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgb Financial 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 Dgb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgb Financial has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Dgb Financial go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Dgb Financial
Assuming the 90 days trading horizon Aprogen Healthcare is expected to generate 2.22 times less return on investment than Dgb Financial. In addition to that, Aprogen Healthcare is 2.76 times more volatile than Dgb Financial. It trades about 0.04 of its total potential returns per unit of risk. Dgb Financial is currently generating about 0.27 per unit of volatility. If you would invest 922,000 in Dgb Financial on November 27, 2024 and sell it today you would earn a total of 41,000 from holding Dgb Financial or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Dgb Financial
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Dgb Financial |
Aprogen Healthcare and Dgb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Dgb Financial
The main advantage of trading using opposite Aprogen Healthcare and Dgb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Dgb 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 Dgb Financial will offset losses from the drop in Dgb Financial'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 |
| Dgb Financial vs. Duksan Hi Metal | Dgb Financial vs. Hyunwoo Industrial Co | Dgb Financial vs. Hanjoo Light Metal | Dgb Financial vs. PJ Metal 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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