Correlation Between Aprogen Healthcare and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Aprogen Healthcare and Shinhan Inverse 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 Shinhan Inverse 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 Shinhan Inverse WTI, you can compare the effects of market volatilities on Aprogen Healthcare and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aprogen Healthcare and Shinhan Inverse.
Diversification Opportunities for Aprogen Healthcare and Shinhan Inverse
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aprogen and Shinhan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aprogen Healthcare Games and Shinhan Inverse WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse WTI 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse WTI has no effect on the direction of Aprogen Healthcare i.e., Aprogen Healthcare and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Aprogen Healthcare and Shinhan Inverse
Assuming the 90 days trading horizon Aprogen Healthcare Games is expected to generate 2.26 times more return on investment than Shinhan Inverse. However, Aprogen Healthcare is 2.26 times more volatile than Shinhan Inverse WTI. It trades about -0.15 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about -0.36 per unit of risk. If you would invest 58,400 in Aprogen Healthcare Games on October 24, 2024 and sell it today you would lose (6,200) from holding Aprogen Healthcare Games or give up 10.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aprogen Healthcare Games vs. Shinhan Inverse WTI
Performance |
| Timeline |
| Aprogen Healthcare Games |
| Shinhan Inverse WTI |
Aprogen Healthcare and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aprogen Healthcare and Shinhan Inverse
The main advantage of trading using opposite Aprogen Healthcare and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aprogen Healthcare position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.| Aprogen Healthcare vs. Hyundai Green Food | Aprogen Healthcare vs. Seoul Food Industrial | Aprogen Healthcare vs. Dongbu Insurance Co | Aprogen Healthcare vs. Sajo Seafood |
| Shinhan Inverse vs. Youngsin Metal Industrial | Shinhan Inverse vs. Daou Data Corp | Shinhan Inverse vs. Seoyon Topmetal Co | Shinhan Inverse vs. Shinhan Inverse Copper |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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