Correlation Between Aprogen Healthcare and Raontech
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Raontech 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 Raontech 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 Raontech, you can compare the effects of market volatilities on Aprogen Healthcare and Raontech 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 Raontech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Raontech.
Diversification Opportunities for Aprogen Healthcare and Raontech
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aprogen and Raontech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Raontech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raontech 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 Raontech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raontech has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Raontech go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Raontech
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 0.72 times more return on investment than Raontech. However, Aprogen Healthcare Games is 1.39 times less risky than Raontech. It trades about -0.08 of its potential returns per unit of risk. Raontech is currently generating about -0.34 per unit of risk. If you would invest 51,000 in Aprogen Healthcare Games on November 4, 2024 and sell it today you would lose (1,600) from holding Aprogen Healthcare Games or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Raontech
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Raontech |
Aprogen Healthcare and Raontech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Raontech
The main advantage of trading using opposite Aprogen Healthcare and Raontech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Raontech 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 Raontech will offset losses from the drop in Raontech's long position.| Aprogen Healthcare vs. Puloon Technology | Aprogen Healthcare vs. RF Materials Co | Aprogen Healthcare vs. Kolon Plastics | Aprogen Healthcare vs. PH Tech Co |
| Raontech vs. Choil Aluminum | Raontech vs. Heungkuk Metaltech CoLtd | Raontech vs. Sewoon Medical Co | Raontech vs. Daejung Chemicals Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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