Correlation Between Aprogen Healthcare and Air Busan
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Air Busan 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 Air Busan 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 Air Busan Co, you can compare the effects of market volatilities on Aprogen Healthcare and Air Busan 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 Air Busan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Air Busan.
Diversification Opportunities for Aprogen Healthcare and Air Busan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aprogen and Air is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Air Busan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Busan 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 Air Busan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Busan has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Air Busan go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Air Busan
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to under-perform the Air Busan. In addition to that, Aprogen Healthcare is 1.77 times more volatile than Air Busan Co. It trades about -0.05 of its total potential returns per unit of risk. Air Busan Co is currently generating about 0.02 per unit of volatility. If you would invest 231,000 in Air Busan Co on September 3, 2024 and sell it today you would earn a total of 14,000 from holding Air Busan Co or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.1% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Air Busan Co
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Air Busan |
Aprogen Healthcare and Air Busan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Air Busan
The main advantage of trading using opposite Aprogen Healthcare and Air Busan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Air Busan 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 Air Busan will offset losses from the drop in Air Busan'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 |
| Air Busan vs. Shinsung Delta Tech | Air Busan vs. Aprogen Healthcare Games | Air Busan vs. Yura Tech Co | Air Busan vs. Chorokbaem Healthcare Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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