Correlation Between Aprogen Healthcare and LB Investment
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and LB Investment 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 LB Investment 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 LB Investment, you can compare the effects of market volatilities on Aprogen Healthcare and LB Investment 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 LB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and LB Investment.
Diversification Opportunities for Aprogen Healthcare and LB Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aprogen and 309960 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and LB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Investment 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 LB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LB Investment has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and LB Investment go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and LB Investment
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 1.31 times more return on investment than LB Investment. However, Aprogen Healthcare is 1.31 times more volatile than LB Investment. It trades about -0.03 of its potential returns per unit of risk. LB Investment is currently generating about -0.04 per unit of risk. If you would invest 185,500 in Aprogen Healthcare Games on September 26, 2024 and sell it today you would lose (127,100) from holding Aprogen Healthcare Games or give up 68.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.04% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. LB Investment
Performance |
| Timeline |
| Aprogen Healthcare Games |
| LB Investment |
Aprogen Healthcare and LB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and LB Investment
The main advantage of trading using opposite Aprogen Healthcare and LB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, LB Investment 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 LB Investment will offset losses from the drop in LB Investment's long position.| Aprogen Healthcare vs. Dongsin Engineering Construction | Aprogen Healthcare vs. Doosan Fuel Cell | Aprogen Healthcare vs. Daishin Balance 1 | Aprogen Healthcare vs. Total Soft Bank |
| LB Investment vs. Samsung Electronics Co | LB Investment vs. Samsung Electronics Co | LB Investment vs. LG Energy Solution | LB Investment vs. SK Hynix |
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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