Correlation Between ECSTELECOM and Aptamer Sciences
Can any of the company-specific risk be diversified away by investing in both ECSTELECOM and Aptamer Sciences 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 ECSTELECOM and Aptamer Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECSTELECOM Co and Aptamer Sciences, you can compare the effects of market volatilities on ECSTELECOM and Aptamer Sciences 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 ECSTELECOM with a short position of Aptamer Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECSTELECOM and Aptamer Sciences.
Diversification Opportunities for ECSTELECOM and Aptamer Sciences
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ECSTELECOM and Aptamer is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ECSTELECOM Co and Aptamer Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptamer Sciences and ECSTELECOM 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 ECSTELECOM Co are associated (or correlated) with Aptamer Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptamer Sciences has no effect on the direction of ECSTELECOM i.e., ECSTELECOM and Aptamer Sciences go up and down completely randomly.
Pair Corralation between ECSTELECOM and Aptamer Sciences
Assuming the 90 days trading horizon ECSTELECOM Co is expected to generate 0.25 times more return on investment than Aptamer Sciences. However, ECSTELECOM Co is 4.06 times less risky than Aptamer Sciences. It trades about -0.01 of its potential returns per unit of risk. Aptamer Sciences is currently generating about -0.14 per unit of risk. If you would invest 293,500 in ECSTELECOM Co on September 13, 2024 and sell it today you would lose (3,500) from holding ECSTELECOM Co or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
ECSTELECOM Co vs. Aptamer Sciences
Performance |
| Timeline |
| ECSTELECOM |
| Aptamer Sciences |
ECSTELECOM and Aptamer Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECSTELECOM and Aptamer Sciences
The main advantage of trading using opposite ECSTELECOM and Aptamer Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECSTELECOM position performs unexpectedly, Aptamer Sciences 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 Aptamer Sciences will offset losses from the drop in Aptamer Sciences' long position.| ECSTELECOM vs. Kbi Metal Co | ECSTELECOM vs. Hanjin Transportation Co | ECSTELECOM vs. Bohae Brewery | ECSTELECOM vs. Taegu Broadcasting |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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