Correlation Between Sam Yang and Aprogen Healthcare

Can any of the company-specific risk be diversified away by investing in both Sam Yang 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 Sam Yang and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sam Yang Foods and Aprogen Healthcare Games, you can compare the effects of market volatilities on Sam Yang 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 Sam Yang with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Aprogen Healthcare.

Diversification Opportunities for Sam Yang and Aprogen Healthcare

0.1

Correlation Coefficient

Sam Yang  Aprogen Healthcare

Average diversification

The 3 months correlation between Sam and Aprogen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods 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 Sam Yang 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 Sam Yang Foods 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 Sam Yang i.e., Sam Yang and Aprogen Healthcare go up and down completely randomly.

Pair Corralation between Sam Yang and Aprogen Healthcare

Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.78 times more return on investment than Aprogen Healthcare. However, Sam Yang Foods is 1.28 times less risky than Aprogen Healthcare. It trades about 0.23 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.09 per unit of risk. If you would invest  55,086,600  in Sam Yang Foods on December 2, 2024 and sell it today you would earn a total of  30,913,400  from holding Sam Yang Foods or generate 56.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sam Yang Foods  vs.  Aprogen Healthcare Games

Sam Yang Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sam Yang Foods are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sam Yang sustained solid returns over the last few months and may actually be approaching a breakup point.

Aprogen Healthcare Games

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aprogen Healthcare Games are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aprogen Healthcare sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sam Yang and Aprogen Healthcare

The main advantage of trading using opposite Sam Yang and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang 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.

The idea behind Sam Yang Foods and Aprogen Healthcare Games pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.