Correlation Between Daeduck Electronics and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics 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 Daeduck Electronics and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daeduck Electronics Co and AptaBio Therapeutics, you can compare the effects of market volatilities on Daeduck Electronics 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 Daeduck Electronics with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and AptaBio Therapeutics.
Diversification Opportunities for Daeduck Electronics and AptaBio Therapeutics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daeduck and AptaBio is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Daeduck Electronics 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 Daeduck Electronics 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 Daeduck Electronics i.e., Daeduck Electronics and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Daeduck Electronics and AptaBio Therapeutics
Assuming the 90 days trading horizon Daeduck Electronics is expected to generate 6.15 times less return on investment than AptaBio Therapeutics. But when comparing it to its historical volatility, Daeduck Electronics Co is 7.33 times less risky than AptaBio Therapeutics. It trades about 0.02 of its potential returns per unit of risk. 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 | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| Daeduck Electronics |
| AptaBio Therapeutics |
Daeduck Electronics and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and AptaBio Therapeutics
The main advantage of trading using opposite Daeduck Electronics and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics 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.| Daeduck Electronics vs. AptaBio Therapeutics | Daeduck Electronics vs. Daewoo SBI SPAC | Daeduck Electronics vs. Dream Security co | Daeduck Electronics 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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