Correlation Between Cots Technology and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Cots Technology 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 Cots Technology and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cots Technology Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Cots Technology 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 Cots Technology with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cots Technology and Aprogen Healthcare.
Diversification Opportunities for Cots Technology and Aprogen Healthcare
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cots and Aprogen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cots Technology Co 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 Cots Technology 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 Cots Technology Co 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 Cots Technology i.e., Cots Technology and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Cots Technology and Aprogen Healthcare
Assuming the 90 days trading horizon Cots Technology Co is expected to under-perform the Aprogen Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Cots Technology Co is 1.11 times less risky than Aprogen Healthcare. The stock trades about -0.33 of its potential returns per unit of risk. The Aprogen Healthcare Games is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 53,600 in Aprogen Healthcare Games on August 29, 2024 and sell it today you would earn a total of 1,800 from holding Aprogen Healthcare Games or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cots Technology Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Cots Technology |
| Aprogen Healthcare Games |
Cots Technology and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cots Technology and Aprogen Healthcare
The main advantage of trading using opposite Cots Technology and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cots Technology 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.| Cots Technology vs. Samsung Electronics Co | Cots Technology vs. Samsung Electronics Co | Cots Technology vs. LG Energy Solution | Cots Technology vs. SK Hynix |
| Aprogen Healthcare vs. NewFlex Technology Co | Aprogen Healthcare vs. Ilji Technology Co | Aprogen Healthcare vs. Green Cross Medical | Aprogen Healthcare vs. Eugene Technology CoLtd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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