Correlation Between AptaBio Therapeutics and Hyundai Mobis
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Hyundai Mobis 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 Hyundai Mobis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Hyundai Mobis, you can compare the effects of market volatilities on AptaBio Therapeutics and Hyundai Mobis 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 Hyundai Mobis. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Hyundai Mobis.
Diversification Opportunities for AptaBio Therapeutics and Hyundai Mobis
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptaBio and Hyundai is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Hyundai Mobis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Mobis 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 Hyundai Mobis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Mobis has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Hyundai Mobis go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Hyundai Mobis
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Hyundai Mobis. In addition to that, AptaBio Therapeutics is 2.31 times more volatile than Hyundai Mobis. It trades about -0.01 of its total potential returns per unit of risk. Hyundai Mobis is currently generating about 0.02 per unit of volatility. If you would invest 21,188,400 in Hyundai Mobis on September 29, 2024 and sell it today you would earn a total of 2,461,600 from holding Hyundai Mobis or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Hyundai Mobis
Performance |
| Timeline |
| AptaBio Therapeutics |
| Hyundai Mobis |
AptaBio Therapeutics and Hyundai Mobis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Hyundai Mobis
The main advantage of trading using opposite AptaBio Therapeutics and Hyundai Mobis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Hyundai Mobis 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 Hyundai Mobis will offset losses from the drop in Hyundai Mobis' long position.| AptaBio Therapeutics vs. KNOTUS CoLtd | AptaBio Therapeutics vs. Bridge Biotherapeutics | AptaBio Therapeutics vs. Cytogen | AptaBio Therapeutics vs. Genolution |
| Hyundai Mobis vs. Woori Technology Investment | Hyundai Mobis vs. Samsung Card Co | Hyundai Mobis vs. Korea Real Estate | Hyundai Mobis vs. CHOROKBAEM PANY 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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