Correlation Between DONGKUK TED and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED 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 DONGKUK TED and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Aprogen Healthcare Games, you can compare the effects of market volatilities on DONGKUK TED 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 DONGKUK TED with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Aprogen Healthcare.
Diversification Opportunities for DONGKUK TED and Aprogen Healthcare
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DONGKUK and Aprogen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL 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 DONGKUK TED 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 DONGKUK TED METAL 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 DONGKUK TED i.e., DONGKUK TED and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between DONGKUK TED and Aprogen Healthcare
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.42 times more return on investment than Aprogen Healthcare. However, DONGKUK TED METAL is 2.4 times less risky than Aprogen Healthcare. It trades about 0.05 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.1 per unit of risk. If you would invest 626,000 in DONGKUK TED METAL on November 6, 2024 and sell it today you would earn a total of 4,000 from holding DONGKUK TED METAL or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Aprogen Healthcare Games
Performance |
| Timeline |
| DONGKUK TED METAL |
| Aprogen Healthcare Games |
DONGKUK TED and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Aprogen Healthcare
The main advantage of trading using opposite DONGKUK TED and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED 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.| DONGKUK TED vs. Jin Air Co | DONGKUK TED vs. Cloud Air CoLtd | DONGKUK TED vs. Nable Communications | DONGKUK TED vs. Nice Information Telecommunication |
| Aprogen Healthcare vs. LAKE MATERIALS LTD | Aprogen Healthcare vs. Hyundai Engineering Plastics | Aprogen Healthcare vs. Duksan Hi Metal | Aprogen Healthcare vs. PI Advanced Materials |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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