Correlation Between AptaBio Therapeutics and Sam Chun
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Sam Chun 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 Sam Chun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Sam Chun Dang, you can compare the effects of market volatilities on AptaBio Therapeutics and Sam Chun 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 Sam Chun. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Sam Chun.
Diversification Opportunities for AptaBio Therapeutics and Sam Chun
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Sam is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Sam Chun Dang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Chun Dang 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 Sam Chun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Chun Dang has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Sam Chun go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Sam Chun
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 0.83 times more return on investment than Sam Chun. However, AptaBio Therapeutics is 1.2 times less risky than Sam Chun. It trades about 0.1 of its potential returns per unit of risk. Sam Chun Dang is currently generating about 0.03 per unit of risk. If you would invest 694,000 in AptaBio Therapeutics on December 1, 2024 and sell it today you would earn a total of 58,000 from holding AptaBio Therapeutics or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Sam Chun Dang
Performance |
| Timeline |
| AptaBio Therapeutics |
| Sam Chun Dang |
AptaBio Therapeutics and Sam Chun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Sam Chun
The main advantage of trading using opposite AptaBio Therapeutics and Sam Chun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Sam Chun 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 Sam Chun will offset losses from the drop in Sam Chun'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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