Correlation Between AptaBio Therapeutics and SeAH Besteel
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and SeAH Besteel 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 SeAH Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and SeAH Besteel Corp, you can compare the effects of market volatilities on AptaBio Therapeutics and SeAH Besteel 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 SeAH Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and SeAH Besteel.
Diversification Opportunities for AptaBio Therapeutics and SeAH Besteel
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptaBio and SeAH is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and SeAH Besteel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Besteel Corp 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 SeAH Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Besteel Corp has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and SeAH Besteel go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and SeAH Besteel
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the SeAH Besteel. In addition to that, AptaBio Therapeutics is 1.33 times more volatile than SeAH Besteel Corp. It trades about 0.0 of its total potential returns per unit of risk. SeAH Besteel Corp is currently generating about 0.03 per unit of volatility. If you would invest 1,530,349 in SeAH Besteel Corp on October 27, 2024 and sell it today you would earn a total of 443,651 from holding SeAH Besteel Corp or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. SeAH Besteel Corp
Performance |
| Timeline |
| AptaBio Therapeutics |
| SeAH Besteel Corp |
AptaBio Therapeutics and SeAH Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and SeAH Besteel
The main advantage of trading using opposite AptaBio Therapeutics and SeAH Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, SeAH Besteel 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 SeAH Besteel will offset losses from the drop in SeAH Besteel's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| SeAH Besteel vs. KB Financial Group | SeAH Besteel vs. Shinhan Financial Group | SeAH Besteel vs. Hana Financial | SeAH Besteel vs. Woori Financial Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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