Correlation Between LEADCORP and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both LEADCORP 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 LEADCORP and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The LEADCORP and Aprogen Healthcare Games, you can compare the effects of market volatilities on LEADCORP 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 LEADCORP with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEADCORP and Aprogen Healthcare.
Diversification Opportunities for LEADCORP and Aprogen Healthcare
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LEADCORP and Aprogen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding The LEADCORP 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 LEADCORP 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 The LEADCORP 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 LEADCORP i.e., LEADCORP and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between LEADCORP and Aprogen Healthcare
Assuming the 90 days trading horizon The LEADCORP is expected to generate 0.28 times more return on investment than Aprogen Healthcare. However, The LEADCORP is 3.6 times less risky than Aprogen Healthcare. It trades about -0.22 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.14 per unit of risk. If you would invest 452,000 in The LEADCORP on September 12, 2024 and sell it today you would lose (59,000) from holding The LEADCORP or give up 13.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
The LEADCORP vs. Aprogen Healthcare Games
Performance |
Timeline |
LEADCORP |
Aprogen Healthcare Games |
LEADCORP and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LEADCORP and Aprogen Healthcare
The main advantage of trading using opposite LEADCORP and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEADCORP 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.LEADCORP vs. CKH Food Health | LEADCORP vs. NICE Information Service | LEADCORP vs. Organic Special Pet | LEADCORP vs. Hyundai Green Food |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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