Correlation Between Aprogen Healthcare and Hyundai Heavy
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Hyundai Heavy 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 Hyundai Heavy 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 Hyundai Heavy Industries, you can compare the effects of market volatilities on Aprogen Healthcare and Hyundai Heavy 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 Hyundai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Hyundai Heavy.
Diversification Opportunities for Aprogen Healthcare and Hyundai Heavy
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aprogen and Hyundai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Hyundai Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Heavy Industries 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 Hyundai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Heavy Industries has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Hyundai Heavy go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Hyundai Heavy
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.13 times more return on investment than Hyundai Heavy. However, Aprogen Healthcare is 1.13 times more volatile than Hyundai Heavy Industries. It trades about 0.18 of its potential returns per unit of risk. Hyundai Heavy Industries is currently generating about -0.18 per unit of risk. If you would invest 49,400 in Aprogen Healthcare Games on November 28, 2024 and sell it today you would earn a total of 5,100 from holding Aprogen Healthcare Games or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Hyundai Heavy Industries
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Hyundai Heavy Industries |
Aprogen Healthcare and Hyundai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Hyundai Heavy
The main advantage of trading using opposite Aprogen Healthcare and Hyundai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Hyundai Heavy 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 Hyundai Heavy will offset losses from the drop in Hyundai Heavy's long position.| Aprogen Healthcare vs. Daejung Chemicals Metals | Aprogen Healthcare vs. Busan Industrial Co | Aprogen Healthcare vs. Industrial Bank | Aprogen Healthcare vs. Duksan Hi Metal |
| Hyundai Heavy vs. Daewon Media Co | Hyundai Heavy vs. Hanil Chemical Ind | Hyundai Heavy vs. FNC Entertainment Co | Hyundai Heavy vs. Hannong Chemicals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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