Correlation Between Aprogen Healthcare and Iljin HySolus
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Iljin HySolus 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 Iljin HySolus 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 Iljin HySolus Co, you can compare the effects of market volatilities on Aprogen Healthcare and Iljin HySolus 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 Iljin HySolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Iljin HySolus.
Diversification Opportunities for Aprogen Healthcare and Iljin HySolus
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aprogen and Iljin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Iljin HySolus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin HySolus 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 Iljin HySolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin HySolus has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Iljin HySolus go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Iljin HySolus
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Iljin HySolus. In addition to that, Aprogen Healthcare is 1.32 times more volatile than Iljin HySolus Co. It trades about -0.18 of its total potential returns per unit of risk. Iljin HySolus Co is currently generating about -0.19 per unit of volatility. If you would invest 2,130,000 in Iljin HySolus Co on September 3, 2024 and sell it today you would lose (291,000) from holding Iljin HySolus Co or give up 13.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Iljin HySolus Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Iljin HySolus |
Aprogen Healthcare and Iljin HySolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Iljin HySolus
The main advantage of trading using opposite Aprogen Healthcare and Iljin HySolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Iljin HySolus 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 Iljin HySolus will offset losses from the drop in Iljin HySolus' long position.| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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