Correlation Between AptaBio Therapeutics and Doosan
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Doosan 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 AptaBio Therapeutics and Doosan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Doosan, you can compare the effects of market volatilities on AptaBio Therapeutics and Doosan 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 AptaBio Therapeutics with a short position of Doosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Doosan.
Diversification Opportunities for AptaBio Therapeutics and Doosan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptaBio and Doosan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Doosan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan and AptaBio Therapeutics 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 AptaBio Therapeutics are associated (or correlated) with Doosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Doosan go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Doosan
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Doosan. But the stock apears to be less risky and, when comparing its historical volatility, AptaBio Therapeutics is 1.6 times less risky than Doosan. The stock trades about -0.29 of its potential returns per unit of risk. The Doosan is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 19,310,000 in Doosan on September 3, 2024 and sell it today you would earn a total of 180,000 from holding Doosan or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Doosan
Performance |
| Timeline |
| AptaBio Therapeutics |
| Doosan |
AptaBio Therapeutics and Doosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Doosan
The main advantage of trading using opposite AptaBio Therapeutics and Doosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Doosan 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 Doosan will offset losses from the drop in Doosan's long position.| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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