Correlation Between AptaBio Therapeutics and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Kukdong Oil 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 Kukdong Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Kukdong Oil Chemicals, you can compare the effects of market volatilities on AptaBio Therapeutics and Kukdong Oil 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 Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Kukdong Oil.
Diversification Opportunities for AptaBio Therapeutics and Kukdong Oil
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AptaBio and Kukdong is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals 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 Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Kukdong Oil go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Kukdong Oil
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 28.0 times less return on investment than Kukdong Oil. In addition to that, AptaBio Therapeutics is 1.46 times more volatile than Kukdong Oil Chemicals. It trades about 0.0 of its total potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about 0.02 per unit of volatility. If you would invest 328,407 in Kukdong Oil Chemicals on November 9, 2024 and sell it today you would earn a total of 20,093 from holding Kukdong Oil Chemicals or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| AptaBio Therapeutics |
| Kukdong Oil Chemicals |
AptaBio Therapeutics and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Kukdong Oil
The main advantage of trading using opposite AptaBio Therapeutics and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Kukdong Oil vs. AptaBio Therapeutics | Kukdong Oil vs. Daewoo SBI SPAC | Kukdong Oil vs. Dream Security co | Kukdong Oil 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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