Correlation Between Aprogen Healthcare and Hana Materials
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Hana Materials 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 Hana Materials 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 Hana Materials, you can compare the effects of market volatilities on Aprogen Healthcare and Hana Materials 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 Hana Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Hana Materials.
Diversification Opportunities for Aprogen Healthcare and Hana Materials
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aprogen and Hana is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Hana Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Materials 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 Hana Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Materials has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Hana Materials go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Hana Materials
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 2.1 times more return on investment than Hana Materials. However, Aprogen Healthcare is 2.1 times more volatile than Hana Materials. It trades about -0.24 of its potential returns per unit of risk. Hana Materials is currently generating about -0.57 per unit of risk. If you would invest 55,400 in Aprogen Healthcare Games on September 4, 2024 and sell it today you would lose (12,800) from holding Aprogen Healthcare Games or give up 23.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Hana Materials
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Hana Materials |
Aprogen Healthcare and Hana Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Hana Materials
The main advantage of trading using opposite Aprogen Healthcare and Hana Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Hana Materials 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 Hana Materials will offset losses from the drop in Hana Materials' 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 |
| Hana Materials vs. SK Hynix | Hana Materials vs. LX Semicon Co | Hana Materials vs. Tokai Carbon Korea | Hana Materials vs. People Technology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |