Correlation Between AptaBio Therapeutics and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Samyoung Electronics 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 Samyoung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Samyoung Electronics Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Samyoung Electronics.
Diversification Opportunities for AptaBio Therapeutics and Samyoung Electronics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AptaBio and Samyoung is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Samyoung Electronics go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Samyoung Electronics
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Samyoung Electronics. In addition to that, AptaBio Therapeutics is 2.26 times more volatile than Samyoung Electronics Co. It trades about -0.28 of its total potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.21 per unit of volatility. If you would invest 960,000 in Samyoung Electronics Co on August 29, 2024 and sell it today you would earn a total of 59,000 from holding Samyoung Electronics Co or generate 6.15% 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. Samyoung Electronics Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Samyoung Electronics |
AptaBio Therapeutics and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Samyoung Electronics
The main advantage of trading using opposite AptaBio Therapeutics and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.The idea behind AptaBio Therapeutics and Samyoung Electronics Co 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.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |