Correlation Between Aprogen Healthcare and Kakao Games
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Kakao Games 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 Kakao Games 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 Kakao Games Corp, you can compare the effects of market volatilities on Aprogen Healthcare and Kakao Games 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 Kakao Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Kakao Games.
Diversification Opportunities for Aprogen Healthcare and Kakao Games
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aprogen and Kakao is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Kakao Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakao Games 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 Kakao Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakao Games Corp has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Kakao Games go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Kakao Games
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 0.99 times more return on investment than Kakao Games. However, Aprogen Healthcare Games is 1.01 times less risky than Kakao Games. It trades about -0.02 of its potential returns per unit of risk. Kakao Games Corp is currently generating about -0.21 per unit of risk. If you would invest 51,000 in Aprogen Healthcare Games on October 25, 2024 and sell it today you would lose (600.00) from holding Aprogen Healthcare Games or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Kakao Games Corp
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Kakao Games Corp |
Aprogen Healthcare and Kakao Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Kakao Games
The main advantage of trading using opposite Aprogen Healthcare and Kakao Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Kakao Games 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 Kakao Games will offset losses from the drop in Kakao Games' long position.| Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. Samsung Electronics Co | Aprogen Healthcare vs. SK Hynix | Aprogen Healthcare vs. HMM Co |
| Kakao Games vs. Busan Industrial Co | Kakao Games vs. Busan Ind | Kakao Games vs. RPBio Inc | Kakao Games vs. Finebesteel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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