Correlation Between LS Materials and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both LS 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 LS 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 LS Materials and Aprogen Healthcare Games, you can compare the effects of market volatilities on LS 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 LS Materials with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of LS Materials and Aprogen Healthcare.
Diversification Opportunities for LS Materials and Aprogen Healthcare
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 417200 and Aprogen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding LS 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 LS 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 LS 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 LS Materials i.e., LS Materials and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between LS Materials and Aprogen Healthcare
Assuming the 90 days trading horizon LS Materials is expected to generate 4.54 times more return on investment than Aprogen Healthcare. However, LS Materials is 4.54 times more volatile than Aprogen Healthcare Games. It trades about 0.05 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 599,449 in LS Materials on September 3, 2024 and sell it today you would earn a total of 549,551 from holding LS Materials or generate 91.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.96% |
| Values | Daily Returns |
LS Materials vs. Aprogen Healthcare Games
Performance |
| Timeline |
| LS Materials |
| Aprogen Healthcare Games |
LS Materials and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LS Materials and Aprogen Healthcare
The main advantage of trading using opposite LS Materials and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LS 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.| LS Materials vs. Samsung Electronics Co | LS Materials vs. Samsung Electronics Co | LS Materials vs. LG Energy Solution | LS Materials vs. SK Hynix |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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