Correlation Between AptaBio Therapeutics and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Jahwa Electron 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 Jahwa Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Jahwa Electron, you can compare the effects of market volatilities on AptaBio Therapeutics and Jahwa Electron 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 Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Jahwa Electron.
Diversification Opportunities for AptaBio Therapeutics and Jahwa Electron
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AptaBio and Jahwa is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron 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 Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Jahwa Electron go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Jahwa Electron
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 1.62 times more return on investment than Jahwa Electron. However, AptaBio Therapeutics is 1.62 times more volatile than Jahwa Electron. It trades about 0.04 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.08 per unit of risk. If you would invest 550,000 in AptaBio Therapeutics on December 27, 2024 and sell it today you would earn a total of 154,000 from holding AptaBio Therapeutics or generate 28.0% 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. Jahwa Electron
Performance |
| Timeline |
| AptaBio Therapeutics |
| Jahwa Electron |
AptaBio Therapeutics and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Jahwa Electron
The main advantage of trading using opposite AptaBio Therapeutics and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Jahwa Electron vs. Wing Yip Food | Jahwa Electron vs. Daou Technology | Jahwa Electron vs. CKH Food Health | Jahwa Electron vs. AurosTechnology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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