Correlation Between Songwon Industrial and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Songwon Industrial and AptaBio Therapeutics 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 Songwon Industrial and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Songwon Industrial Co and AptaBio Therapeutics, you can compare the effects of market volatilities on Songwon Industrial and AptaBio Therapeutics 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 Songwon Industrial with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songwon Industrial and AptaBio Therapeutics.
Diversification Opportunities for Songwon Industrial and AptaBio Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Songwon and AptaBio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Songwon Industrial Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Songwon Industrial 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 Songwon Industrial Co are associated (or correlated) with AptaBio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptaBio Therapeutics has no effect on the direction of Songwon Industrial i.e., Songwon Industrial and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Songwon Industrial and AptaBio Therapeutics
Assuming the 90 days trading horizon Songwon Industrial Co is expected to under-perform the AptaBio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Songwon Industrial Co is 2.21 times less risky than AptaBio Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The AptaBio Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 680,000 in AptaBio Therapeutics on August 25, 2024 and sell it today you would lose (52,000) from holding AptaBio Therapeutics or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songwon Industrial Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| Songwon Industrial |
| AptaBio Therapeutics |
Songwon Industrial and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songwon Industrial and AptaBio Therapeutics
The main advantage of trading using opposite Songwon Industrial and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songwon Industrial position performs unexpectedly, AptaBio Therapeutics 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 AptaBio Therapeutics will offset losses from the drop in AptaBio Therapeutics' long position.| Songwon Industrial vs. AptaBio Therapeutics | Songwon Industrial vs. Daewoo SBI SPAC | Songwon Industrial vs. Dream Security co | Songwon Industrial vs. Microfriend |
| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |