Correlation Between Aprogen Healthcare and DSC Investment
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and DSC Investment 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 DSC Investment 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 DSC Investment, you can compare the effects of market volatilities on Aprogen Healthcare and DSC Investment 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 DSC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and DSC Investment.
Diversification Opportunities for Aprogen Healthcare and DSC Investment
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aprogen and DSC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and DSC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSC Investment 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 DSC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSC Investment has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and DSC Investment go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and DSC Investment
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the DSC Investment. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 3.39 times less risky than DSC Investment. The stock trades about -0.33 of its potential returns per unit of risk. The DSC Investment is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 286,500 in DSC Investment on November 18, 2024 and sell it today you would earn a total of 156,000 from holding DSC Investment or generate 54.45% 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. DSC Investment
Performance |
| Timeline |
| Aprogen Healthcare Games |
| DSC Investment |
Aprogen Healthcare and DSC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and DSC Investment
The main advantage of trading using opposite Aprogen Healthcare and DSC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, DSC Investment 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 DSC Investment will offset losses from the drop in DSC Investment's long position.| Aprogen Healthcare vs. PH Tech Co | Aprogen Healthcare vs. Daesung Hi Tech Co | Aprogen Healthcare vs. LG Display Co | Aprogen Healthcare vs. Hanyang Digitech Co |
| DSC Investment vs. Daejoo Electronic Materials | DSC Investment vs. Sungho Electronics Corp | DSC Investment vs. Korean Reinsurance Co | DSC Investment vs. Seoul Electronics Telecom |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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