Correlation Between APro and Amogreentech
Can any of the company-specific risk be diversified away by investing in both APro and Amogreentech 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 APro and Amogreentech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APro Co and Amogreentech Co, you can compare the effects of market volatilities on APro and Amogreentech 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 APro with a short position of Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of APro and Amogreentech.
Diversification Opportunities for APro and Amogreentech
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between APro and Amogreentech is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding APro Co and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech and APro 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 APro Co are associated (or correlated) with Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of APro i.e., APro and Amogreentech go up and down completely randomly.
Pair Corralation between APro and Amogreentech
Assuming the 90 days trading horizon APro Co is expected to generate 1.06 times more return on investment than Amogreentech. However, APro is 1.06 times more volatile than Amogreentech Co. It trades about 0.08 of its potential returns per unit of risk. Amogreentech Co is currently generating about 0.01 per unit of risk. If you would invest 532,000 in APro Co on October 20, 2024 and sell it today you would earn a total of 15,000 from holding APro Co or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
APro Co vs. Amogreentech Co
Performance |
| Timeline |
| APro |
| Amogreentech |
APro and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APro and Amogreentech
The main advantage of trading using opposite APro and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APro position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| APro vs. Ecopro BM Co | APro vs. Shin Heung Energy | APro vs. Sangsin Energy Display | APro vs. Amogreentech CoLtd |
| Amogreentech vs. RF Materials Co | Amogreentech vs. Solus Advanced Materials | Amogreentech vs. Youngsin Metal Industrial | Amogreentech vs. Hanjin Transportation 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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