Correlation Between Aprogen Healthcare and TS Investment
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and TS 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 TS 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 TS Investment Corp, you can compare the effects of market volatilities on Aprogen Healthcare and TS 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 TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and TS Investment.
Diversification Opportunities for Aprogen Healthcare and TS Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aprogen and 246690 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp 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 TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and TS Investment go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and TS Investment
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the TS Investment. But the stock apears to be less risky and, when comparing its historical volatility, Aprogen Healthcare Games is 1.23 times less risky than TS Investment. The stock trades about -0.03 of its potential returns per unit of risk. The TS Investment Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 91,400 in TS Investment Corp on October 30, 2024 and sell it today you would earn a total of 5,200 from holding TS Investment Corp or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. TS Investment Corp
Performance |
| Timeline |
| Aprogen Healthcare Games |
| TS Investment Corp |
Aprogen Healthcare and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and TS Investment
The main advantage of trading using opposite Aprogen Healthcare and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, TS 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 TS Investment will offset losses from the drop in TS Investment's long position.The idea behind Aprogen Healthcare Games and TS Investment Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.
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