Correlation Between SIMMTECH and Aprogen KIC
Can any of the company-specific risk be diversified away by investing in both SIMMTECH and Aprogen KIC 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 SIMMTECH and Aprogen KIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIMMTECH Co and Aprogen KIC, you can compare the effects of market volatilities on SIMMTECH and Aprogen KIC 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 SIMMTECH with a short position of Aprogen KIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIMMTECH and Aprogen KIC.
Diversification Opportunities for SIMMTECH and Aprogen KIC
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIMMTECH and Aprogen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SIMMTECH Co and Aprogen KIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen KIC and SIMMTECH 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 SIMMTECH Co are associated (or correlated) with Aprogen KIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen KIC has no effect on the direction of SIMMTECH i.e., SIMMTECH and Aprogen KIC go up and down completely randomly.
Pair Corralation between SIMMTECH and Aprogen KIC
Assuming the 90 days trading horizon SIMMTECH Co is expected to under-perform the Aprogen KIC. In addition to that, SIMMTECH is 1.02 times more volatile than Aprogen KIC. It trades about -0.43 of its total potential returns per unit of risk. Aprogen KIC is currently generating about 0.09 per unit of volatility. If you would invest 109,000 in Aprogen KIC on August 25, 2024 and sell it today you would earn a total of 5,600 from holding Aprogen KIC or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIMMTECH Co vs. Aprogen KIC
Performance |
| Timeline |
| SIMMTECH |
| Aprogen KIC |
SIMMTECH and Aprogen KIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIMMTECH and Aprogen KIC
The main advantage of trading using opposite SIMMTECH and Aprogen KIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMMTECH position performs unexpectedly, Aprogen KIC 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 KIC will offset losses from the drop in Aprogen KIC's long position.| SIMMTECH vs. People Technology | SIMMTECH vs. iNtRON Biotechnology | SIMMTECH vs. Hanjin Transportation Co | SIMMTECH vs. Alton Sports CoLtd |
| Aprogen KIC vs. Atinum Investment Co | Aprogen KIC vs. EBEST Investment Securities | Aprogen KIC vs. SBI Investment KOREA | Aprogen KIC vs. Sangsangin Investment Securities |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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