Correlation Between Hana Financial and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Hana Financial 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 Hana Financial and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial 7 and AptaBio Therapeutics, you can compare the effects of market volatilities on Hana Financial 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 Hana Financial with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and AptaBio Therapeutics.
Diversification Opportunities for Hana Financial and AptaBio Therapeutics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and AptaBio is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Hana Financial 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 Hana Financial 7 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 Hana Financial i.e., Hana Financial and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Hana Financial and AptaBio Therapeutics
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 1.72 times more return on investment than AptaBio Therapeutics. However, Hana Financial is 1.72 times more volatile than AptaBio Therapeutics. It trades about 0.28 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.34 per unit of risk. If you would invest 924,000 in Hana Financial 7 on September 4, 2024 and sell it today you would earn a total of 313,000 from holding Hana Financial 7 or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. AptaBio Therapeutics
Performance |
| Timeline |
| Hana Financial 7 |
| AptaBio Therapeutics |
Hana Financial and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and AptaBio Therapeutics
The main advantage of trading using opposite Hana Financial and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial 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.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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