Correlation Between AptaBio Therapeutics and KTB Investment
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and KTB Investment 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 KTB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and KTB Investment Securities, you can compare the effects of market volatilities on AptaBio Therapeutics and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and KTB Investment.
Diversification Opportunities for AptaBio Therapeutics and KTB Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AptaBio and KTB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and KTB Investment go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and KTB Investment
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 0.68 times more return on investment than KTB Investment. However, AptaBio Therapeutics is 1.48 times less risky than KTB Investment. It trades about 0.15 of its potential returns per unit of risk. KTB Investment Securities is currently generating about -0.05 per unit of risk. If you would invest 630,000 in AptaBio Therapeutics on October 23, 2024 and sell it today you would earn a total of 51,000 from holding AptaBio Therapeutics or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. KTB Investment Securities
Performance |
| Timeline |
| AptaBio Therapeutics |
| KTB Investment Securities |
AptaBio Therapeutics and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and KTB Investment
The main advantage of trading using opposite AptaBio Therapeutics and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| KTB Investment vs. AptaBio Therapeutics | KTB Investment vs. Daewoo SBI SPAC | KTB Investment vs. Dream Security co | KTB Investment 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |