Correlation Between GS Retail and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both GS Retail 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 GS Retail and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and AptaBio Therapeutics, you can compare the effects of market volatilities on GS Retail 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 GS Retail with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and AptaBio Therapeutics.
Diversification Opportunities for GS Retail and AptaBio Therapeutics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 007070 and AptaBio is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and GS Retail 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 GS Retail 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 GS Retail i.e., GS Retail and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between GS Retail and AptaBio Therapeutics
Assuming the 90 days trading horizon GS Retail Co is expected to generate 0.46 times more return on investment than AptaBio Therapeutics. However, GS Retail Co is 2.17 times less risky than AptaBio Therapeutics. It trades about 0.06 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.09 per unit of risk. If you would invest 2,175,000 in GS Retail Co on August 28, 2024 and sell it today you would earn a total of 135,000 from holding GS Retail Co or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Retail Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| GS Retail |
| AptaBio Therapeutics |
GS Retail and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and AptaBio Therapeutics
The main advantage of trading using opposite GS Retail and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail 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.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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