Correlation Between Cosmecca Korea and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cosmecca Korea 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 Cosmecca Korea and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmecca Korea Co and AptaBio Therapeutics, you can compare the effects of market volatilities on Cosmecca Korea 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 Cosmecca Korea with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmecca Korea and AptaBio Therapeutics.
Diversification Opportunities for Cosmecca Korea and AptaBio Therapeutics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cosmecca and AptaBio is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cosmecca Korea Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Cosmecca Korea 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 Cosmecca Korea 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 Cosmecca Korea i.e., Cosmecca Korea and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Cosmecca Korea and AptaBio Therapeutics
Assuming the 90 days trading horizon Cosmecca Korea Co is expected to under-perform the AptaBio Therapeutics. In addition to that, Cosmecca Korea is 1.44 times more volatile than AptaBio Therapeutics. It trades about -0.38 of its total potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.29 per unit of volatility. If you would invest 820,000 in AptaBio Therapeutics on August 31, 2024 and sell it today you would lose (147,000) from holding AptaBio Therapeutics or give up 17.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cosmecca Korea Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| Cosmecca Korea |
| AptaBio Therapeutics |
Cosmecca Korea and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmecca Korea and AptaBio Therapeutics
The main advantage of trading using opposite Cosmecca Korea and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmecca Korea 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.| Cosmecca Korea vs. Hyundai Home Shopping | Cosmecca Korea vs. Lindeman Asia Investment | Cosmecca Korea vs. LB Investment | Cosmecca Korea vs. Daedong Metals 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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