Correlation Between Shinhan Inverse and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse 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 Shinhan Inverse and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse Silver and Aprogen Healthcare Games, you can compare the effects of market volatilities on Shinhan Inverse 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 Shinhan Inverse with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and Aprogen Healthcare.
Diversification Opportunities for Shinhan Inverse and Aprogen Healthcare
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinhan and Aprogen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver 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 Shinhan Inverse 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 Shinhan Inverse Silver 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 Shinhan Inverse i.e., Shinhan Inverse and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Shinhan Inverse and Aprogen Healthcare
Assuming the 90 days trading horizon Shinhan Inverse Silver is expected to generate 0.5 times more return on investment than Aprogen Healthcare. However, Shinhan Inverse Silver is 2.01 times less risky than Aprogen Healthcare. It trades about 0.27 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.06 per unit of risk. If you would invest 325,500 in Shinhan Inverse Silver on August 29, 2024 and sell it today you would earn a total of 35,500 from holding Shinhan Inverse Silver or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Shinhan Inverse Silver |
| Aprogen Healthcare Games |
Shinhan Inverse and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and Aprogen Healthcare
The main advantage of trading using opposite Shinhan Inverse and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse 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.| Shinhan Inverse vs. Samyung Trading Co | Shinhan Inverse vs. Genie Music | Shinhan Inverse vs. Sangsangin Investment Securities | Shinhan Inverse vs. SBI Investment KOREA |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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