Correlation Between Aprogen Healthcare and Jin Air
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Jin Air 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 Jin Air 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 Jin Air Co, you can compare the effects of market volatilities on Aprogen Healthcare and Jin Air 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Jin Air.
Diversification Opportunities for Aprogen Healthcare and Jin Air
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Jin is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Jin Air go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Jin Air
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Jin Air. In addition to that, Aprogen Healthcare is 1.15 times more volatile than Jin Air Co. It trades about -0.1 of its total potential returns per unit of risk. Jin Air Co is currently generating about 0.14 per unit of volatility. If you would invest 1,002,000 in Jin Air Co on September 3, 2024 and sell it today you would earn a total of 176,000 from holding Jin Air Co or generate 17.56% 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. Jin Air Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Jin Air |
Aprogen Healthcare and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Jin Air
The main advantage of trading using opposite Aprogen Healthcare and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
| Jin Air vs. DataSolution | Jin Air vs. Alton Sports CoLtd | Jin Air vs. SCI Information Service | Jin Air vs. Shinsegae Food |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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