Correlation Between AptaBio Therapeutics and Lee Ku
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Lee Ku 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 Lee Ku into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Lee Ku Industrial, you can compare the effects of market volatilities on AptaBio Therapeutics and Lee Ku 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 Lee Ku. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Lee Ku.
Diversification Opportunities for AptaBio Therapeutics and Lee Ku
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AptaBio and Lee is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Lee Ku Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lee Ku Industrial 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 Lee Ku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lee Ku Industrial has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Lee Ku go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Lee Ku
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Lee Ku. In addition to that, AptaBio Therapeutics is 1.16 times more volatile than Lee Ku Industrial. It trades about -0.12 of its total potential returns per unit of risk. Lee Ku Industrial is currently generating about -0.03 per unit of volatility. If you would invest 470,000 in Lee Ku Industrial on October 17, 2024 and sell it today you would lose (36,000) from holding Lee Ku Industrial or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Lee Ku Industrial
Performance |
| Timeline |
| AptaBio Therapeutics |
| Lee Ku Industrial |
AptaBio Therapeutics and Lee Ku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Lee Ku
The main advantage of trading using opposite AptaBio Therapeutics and Lee Ku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Lee Ku 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 Lee Ku will offset losses from the drop in Lee Ku's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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