Correlation Between AptaBio Therapeutics and Jeju Bank
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Jeju Bank 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 Jeju Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Jeju Bank, you can compare the effects of market volatilities on AptaBio Therapeutics and Jeju Bank 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 Jeju Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Jeju Bank.
Diversification Opportunities for AptaBio Therapeutics and Jeju Bank
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Jeju is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Jeju Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Bank 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 Jeju Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Bank has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Jeju Bank go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Jeju Bank
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 1.37 times more return on investment than Jeju Bank. However, AptaBio Therapeutics is 1.37 times more volatile than Jeju Bank. It trades about 0.02 of its potential returns per unit of risk. Jeju Bank is currently generating about -0.03 per unit of risk. If you would invest 712,000 in AptaBio Therapeutics on November 3, 2024 and sell it today you would lose (18,000) from holding AptaBio Therapeutics or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Jeju Bank
Performance |
| Timeline |
| AptaBio Therapeutics |
| Jeju Bank |
AptaBio Therapeutics and Jeju Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Jeju Bank
The main advantage of trading using opposite AptaBio Therapeutics and Jeju Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Jeju Bank 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 Jeju Bank will offset losses from the drop in Jeju Bank's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Jeju Bank vs. Anam Electronics Co | Jeju Bank vs. Vissem Electronics Co | Jeju Bank vs. Ssangyong Information Communication | Jeju Bank vs. ABCO Electronics Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |