Correlation Between EASY HOLDINGS and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both EASY HOLDINGS 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 EASY HOLDINGS and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EASY HOLDINGS Co and AptaBio Therapeutics, you can compare the effects of market volatilities on EASY HOLDINGS 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 EASY HOLDINGS with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EASY HOLDINGS and AptaBio Therapeutics.
Diversification Opportunities for EASY HOLDINGS and AptaBio Therapeutics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EASY and AptaBio is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding EASY HOLDINGS Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and EASY HOLDINGS 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 EASY HOLDINGS 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 EASY HOLDINGS i.e., EASY HOLDINGS and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between EASY HOLDINGS and AptaBio Therapeutics
Assuming the 90 days trading horizon EASY HOLDINGS Co is expected to generate 0.55 times more return on investment than AptaBio Therapeutics. However, EASY HOLDINGS Co is 1.8 times less risky than AptaBio Therapeutics. It trades about 0.26 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.32 per unit of risk. If you would invest 260,000 in EASY HOLDINGS Co on September 1, 2024 and sell it today you would earn a total of 26,000 from holding EASY HOLDINGS Co or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
EASY HOLDINGS Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| EASY HOLDINGS |
| AptaBio Therapeutics |
EASY HOLDINGS and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EASY HOLDINGS and AptaBio Therapeutics
The main advantage of trading using opposite EASY HOLDINGS and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EASY HOLDINGS 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.The idea behind EASY HOLDINGS Co and AptaBio Therapeutics 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.| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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