Correlation Between Hana Materials and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Hana Materials 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 Hana Materials and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and Aprogen Healthcare Games, you can compare the effects of market volatilities on Hana Materials 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 Hana Materials with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and Aprogen Healthcare.
Diversification Opportunities for Hana Materials and Aprogen Healthcare
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and Aprogen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials 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 Hana Materials 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 Hana Materials 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 Hana Materials i.e., Hana Materials and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Hana Materials and Aprogen Healthcare
Assuming the 90 days trading horizon Hana Materials is expected to generate 0.69 times more return on investment than Aprogen Healthcare. However, Hana Materials is 1.45 times less risky than Aprogen Healthcare. It trades about -0.02 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.04 per unit of risk. If you would invest 3,779,698 in Hana Materials on November 7, 2024 and sell it today you would lose (1,464,698) from holding Hana Materials or give up 38.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.07% |
| Values | Daily Returns |
Hana Materials vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Hana Materials |
| Aprogen Healthcare Games |
Hana Materials and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and Aprogen Healthcare
The main advantage of trading using opposite Hana Materials and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials 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.| Hana Materials vs. Coloray International Investment | Hana Materials vs. TS Investment Corp | Hana Materials vs. FOODWELL Co | Hana Materials vs. DSC Investment |
| Aprogen Healthcare vs. LAKE MATERIALS LTD | Aprogen Healthcare vs. Hyundai Engineering Plastics | Aprogen Healthcare vs. Duksan Hi Metal | Aprogen Healthcare vs. PI Advanced Materials |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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