Correlation Between Amogreentech and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Amogreentech and Aprogen Healthcare 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 Amogreentech and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Amogreentech and Aprogen Healthcare 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 Amogreentech with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and Aprogen Healthcare.
Diversification Opportunities for Amogreentech and Aprogen Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amogreentech and Aprogen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games and Amogreentech 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 Amogreentech Co are associated (or correlated) with Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Amogreentech i.e., Amogreentech and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Amogreentech and Aprogen Healthcare
Assuming the 90 days trading horizon Amogreentech Co is expected to under-perform the Aprogen Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Amogreentech Co is 1.52 times less risky than Aprogen Healthcare. The stock trades about -0.08 of its potential returns per unit of risk. The Aprogen Healthcare Games is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 146,800 in Aprogen Healthcare Games on August 28, 2024 and sell it today you would lose (95,300) from holding Aprogen Healthcare Games or give up 64.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Amogreentech |
| Aprogen Healthcare Games |
Amogreentech and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and Aprogen Healthcare
The main advantage of trading using opposite Amogreentech and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.The idea behind Amogreentech Co and Aprogen Healthcare Games pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aprogen Healthcare vs. Korea Real Estate | Aprogen Healthcare vs. Korea Ratings Co | Aprogen Healthcare vs. IQuest Co | Aprogen Healthcare vs. Wonbang Tech 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |