Correlation Between INNOX Advanced and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced 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 INNOX Advanced and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and Aprogen Healthcare Games, you can compare the effects of market volatilities on INNOX Advanced 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 INNOX Advanced with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and Aprogen Healthcare.
Diversification Opportunities for INNOX Advanced and Aprogen Healthcare
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INNOX and Aprogen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced 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 INNOX Advanced 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 INNOX Advanced 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 INNOX Advanced i.e., INNOX Advanced and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between INNOX Advanced and Aprogen Healthcare
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to generate 0.65 times more return on investment than Aprogen Healthcare. However, INNOX Advanced Materials is 1.53 times less risky than Aprogen Healthcare. It trades about -0.01 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.05 per unit of risk. If you would invest 2,827,333 in INNOX Advanced Materials on September 3, 2024 and sell it today you would lose (682,333) from holding INNOX Advanced Materials or give up 24.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.1% |
| Values | Daily Returns |
INNOX Advanced Materials vs. Aprogen Healthcare Games
Performance |
| Timeline |
| INNOX Advanced Materials |
| Aprogen Healthcare Games |
INNOX Advanced and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and Aprogen Healthcare
The main advantage of trading using opposite INNOX Advanced and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced 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.| INNOX Advanced vs. SK Hynix | INNOX Advanced vs. LX Semicon Co | INNOX Advanced vs. Tokai Carbon Korea | INNOX Advanced vs. People Technology |
| Aprogen Healthcare vs. Display Tech Co | Aprogen Healthcare vs. Sam Yang Foods | Aprogen Healthcare vs. Organic Special Pet | Aprogen Healthcare vs. FoodNamoo |
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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |