Correlation Between Aprogen Healthcare and Daechang Steel
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Daechang Steel 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 Daechang Steel 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 Daechang Steel Co, you can compare the effects of market volatilities on Aprogen Healthcare and Daechang Steel 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 Daechang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Daechang Steel.
Diversification Opportunities for Aprogen Healthcare and Daechang Steel
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aprogen and Daechang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Daechang Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daechang Steel 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 Daechang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daechang Steel has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Daechang Steel go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Daechang Steel
Assuming the 90 days trading horizon Aprogen Healthcare is expected to generate 4.79 times less return on investment than Daechang Steel. In addition to that, Aprogen Healthcare is 3.39 times more volatile than Daechang Steel Co. It trades about 0.02 of its total potential returns per unit of risk. Daechang Steel Co is currently generating about 0.25 per unit of volatility. If you would invest 190,099 in Daechang Steel Co on October 13, 2024 and sell it today you would earn a total of 15,901 from holding Daechang Steel Co or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Daechang Steel Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Daechang Steel |
Aprogen Healthcare and Daechang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Daechang Steel
The main advantage of trading using opposite Aprogen Healthcare and Daechang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Daechang Steel 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 Daechang Steel will offset losses from the drop in Daechang Steel's long position.| Aprogen Healthcare vs. Tamul Multimedia Co | Aprogen Healthcare vs. Cube Entertainment | Aprogen Healthcare vs. MetaLabs Co | Aprogen Healthcare vs. MediaZen |
| Daechang Steel vs. Samlip General Foods | Daechang Steel vs. FoodNamoo | Daechang Steel vs. Aprogen Healthcare Games | Daechang Steel vs. Mobile Appliance |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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