Correlation Between AptaBio Therapeutics and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Tae Kyung 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 Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Tae Kyung Chemical, you can compare the effects of market volatilities on AptaBio Therapeutics and Tae Kyung 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 Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Tae Kyung.
Diversification Opportunities for AptaBio Therapeutics and Tae Kyung
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AptaBio and Tae is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical 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 Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Tae Kyung go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Tae Kyung
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Tae Kyung. In addition to that, AptaBio Therapeutics is 2.1 times more volatile than Tae Kyung Chemical. It trades about -0.35 of its total potential returns per unit of risk. Tae Kyung Chemical is currently generating about 0.01 per unit of volatility. If you would invest 1,089,000 in Tae Kyung Chemical on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Tae Kyung Chemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Tae Kyung Chemical
Performance |
| Timeline |
| AptaBio Therapeutics |
| Tae Kyung Chemical |
AptaBio Therapeutics and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Tae Kyung
The main advantage of trading using opposite AptaBio Therapeutics and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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