Correlation Between AptaBio Therapeutics and Samick Musical
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Samick Musical 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 Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Samick Musical Instruments, you can compare the effects of market volatilities on AptaBio Therapeutics and Samick Musical 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 Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Samick Musical.
Diversification Opportunities for AptaBio Therapeutics and Samick Musical
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptaBio and Samick is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr 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 Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Samick Musical go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Samick Musical
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Samick Musical. In addition to that, AptaBio Therapeutics is 3.8 times more volatile than Samick Musical Instruments. It trades about -0.39 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.07 per unit of volatility. If you would invest 109,800 in Samick Musical Instruments on August 27, 2024 and sell it today you would earn a total of 1,200 from holding Samick Musical Instruments or generate 1.09% 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. Samick Musical Instruments
Performance |
| Timeline |
| AptaBio Therapeutics |
| Samick Musical Instr |
AptaBio Therapeutics and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Samick Musical
The main advantage of trading using opposite AptaBio Therapeutics and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.The idea behind AptaBio Therapeutics and Samick Musical Instruments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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