Correlation Between AptaBio Therapeutics and Hanwha Aerospace
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Hanwha Aerospace 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 Hanwha Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Hanwha Aerospace Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Hanwha Aerospace 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 Hanwha Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Hanwha Aerospace.
Diversification Opportunities for AptaBio Therapeutics and Hanwha Aerospace
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptaBio and Hanwha is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Hanwha Aerospace Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Aerospace 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 Hanwha Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Aerospace has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Hanwha Aerospace go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Hanwha Aerospace
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 8.61 times less return on investment than Hanwha Aerospace. In addition to that, AptaBio Therapeutics is 1.35 times more volatile than Hanwha Aerospace Co. It trades about 0.01 of its total potential returns per unit of risk. Hanwha Aerospace Co is currently generating about 0.12 per unit of volatility. If you would invest 12,681,500 in Hanwha Aerospace Co on September 4, 2024 and sell it today you would earn a total of 19,418,500 from holding Hanwha Aerospace Co or generate 153.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Hanwha Aerospace Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Hanwha Aerospace |
AptaBio Therapeutics and Hanwha Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Hanwha Aerospace
The main advantage of trading using opposite AptaBio Therapeutics and Hanwha Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Hanwha Aerospace 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 Hanwha Aerospace will offset losses from the drop in Hanwha Aerospace's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Hanwha Aerospace vs. Sam Yang Foods | Hanwha Aerospace vs. Green Cross Medical | Hanwha Aerospace vs. Shinsegae Food | Hanwha Aerospace vs. ITM Semiconductor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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