Correlation Between AptaBio Therapeutics and Samsung Heavy
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Samsung Heavy 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 Samsung Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Samsung Heavy Industries, you can compare the effects of market volatilities on AptaBio Therapeutics and Samsung Heavy 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 Samsung Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Samsung Heavy.
Diversification Opportunities for AptaBio Therapeutics and Samsung Heavy
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AptaBio and Samsung is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Samsung Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Heavy Industries 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 Samsung Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Heavy Industries has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Samsung Heavy go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Samsung Heavy
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.28 times more return on investment than Samsung Heavy. However, AptaBio Therapeutics is 2.28 times more volatile than Samsung Heavy Industries. It trades about 0.04 of its potential returns per unit of risk. Samsung Heavy Industries is currently generating about 0.07 per unit of risk. If you would invest 606,000 in AptaBio Therapeutics on September 3, 2024 and sell it today you would earn a total of 46,000 from holding AptaBio Therapeutics or generate 7.59% 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. Samsung Heavy Industries
Performance |
| Timeline |
| AptaBio Therapeutics |
| Samsung Heavy Industries |
AptaBio Therapeutics and Samsung Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Samsung Heavy
The main advantage of trading using opposite AptaBio Therapeutics and Samsung Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Samsung Heavy 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 Samsung Heavy will offset losses from the drop in Samsung Heavy's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Samsung Heavy vs. KB Financial Group | Samsung Heavy vs. Shinhan Financial Group | Samsung Heavy vs. Daejung Chemicals Metals | Samsung Heavy vs. SK Chemicals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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