Correlation Between AptaBio Therapeutics and Samsung Life
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Samsung Life 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 Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Samsung Life Insurance, you can compare the effects of market volatilities on AptaBio Therapeutics and Samsung Life 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 Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Samsung Life.
Diversification Opportunities for AptaBio Therapeutics and Samsung Life
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptaBio and Samsung is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Samsung Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life Insurance 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 Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life Insurance has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Samsung Life go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Samsung Life
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Samsung Life. In addition to that, AptaBio Therapeutics is 1.0 times more volatile than Samsung Life Insurance. It trades about -0.28 of its total potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.04 per unit of volatility. If you would invest 10,250,000 in Samsung Life Insurance on August 29, 2024 and sell it today you would earn a total of 210,000 from holding Samsung Life Insurance or generate 2.05% 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. Samsung Life Insurance
Performance |
| Timeline |
| AptaBio Therapeutics |
| Samsung Life Insurance |
AptaBio Therapeutics and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Samsung Life
The main advantage of trading using opposite AptaBio Therapeutics and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.The idea behind AptaBio Therapeutics and Samsung Life Insurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |