Correlation Between Aprogen Healthcare and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Incar 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 Incar 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 Incar Financial Service, you can compare the effects of market volatilities on Aprogen Healthcare and Incar 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Incar Financial.
Diversification Opportunities for Aprogen Healthcare and Incar Financial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aprogen and Incar is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Incar Financial go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Incar Financial
Assuming the 90 days trading horizon Aprogen Healthcare is expected to generate 4.37 times less return on investment than Incar Financial. But when comparing it to its historical volatility, Aprogen Healthcare Games is 1.22 times less risky than Incar Financial. It trades about 0.06 of its potential returns per unit of risk. Incar Financial Service is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 513,000 in Incar Financial Service on August 29, 2024 and sell it today you would earn a total of 103,000 from holding Incar Financial Service or generate 20.08% 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. Incar Financial Service
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Incar Financial Service |
Aprogen Healthcare and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Incar Financial
The main advantage of trading using opposite Aprogen Healthcare and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Incar 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Aprogen Healthcare vs. NewFlex Technology Co | Aprogen Healthcare vs. Ilji Technology Co | Aprogen Healthcare vs. Green Cross Medical | Aprogen Healthcare vs. Eugene Technology CoLtd |
| Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. Shinhan WTI Futures | Incar Financial vs. Finebesteel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |