Correlation Between Cosmax Nbt and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cosmax Nbt 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 Cosmax Nbt and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmax Nbt and AptaBio Therapeutics, you can compare the effects of market volatilities on Cosmax Nbt 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 Cosmax Nbt with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmax Nbt and AptaBio Therapeutics.
Diversification Opportunities for Cosmax Nbt and AptaBio Therapeutics
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cosmax and AptaBio is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cosmax Nbt and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Cosmax Nbt 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 Cosmax Nbt 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 Cosmax Nbt i.e., Cosmax Nbt and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Cosmax Nbt and AptaBio Therapeutics
Assuming the 90 days trading horizon Cosmax Nbt is expected to under-perform the AptaBio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Cosmax Nbt is 2.17 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 610,000 in AptaBio Therapeutics on August 26, 2024 and sell it today you would earn a total of 18,000 from holding AptaBio Therapeutics or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmax Nbt vs. AptaBio Therapeutics
Performance |
| Timeline |
| Cosmax Nbt |
| AptaBio Therapeutics |
Cosmax Nbt and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmax Nbt and AptaBio Therapeutics
The main advantage of trading using opposite Cosmax Nbt and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmax Nbt 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.| Cosmax Nbt vs. Nable Communications | Cosmax Nbt vs. Seoyon Topmetal Co | Cosmax Nbt vs. PJ Metal Co | Cosmax Nbt vs. Eagon Industrial Co |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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