Correlation Between AptaBio Therapeutics and Silla Sg
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Silla Sg 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 Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Silla Sg Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Silla Sg 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 Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Silla Sg.
Diversification Opportunities for AptaBio Therapeutics and Silla Sg
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AptaBio and Silla is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg 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 Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Silla Sg go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Silla Sg
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Silla Sg. In addition to that, AptaBio Therapeutics is 2.29 times more volatile than Silla Sg Co. It trades about -0.27 of its total potential returns per unit of risk. Silla Sg Co is currently generating about -0.13 per unit of volatility. If you would invest 613,000 in Silla Sg Co on August 29, 2024 and sell it today you would lose (24,000) from holding Silla Sg Co or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Silla Sg Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Silla Sg |
AptaBio Therapeutics and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Silla Sg
The main advantage of trading using opposite AptaBio Therapeutics and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec | AptaBio Therapeutics vs. Busan Industrial Co |
| Silla Sg vs. Samsung Electronics Co | Silla Sg vs. Samsung Electronics Co | Silla Sg vs. Hyundai Motor Co | Silla Sg vs. Hyundai Motor |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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