Correlation Between AptaBio Therapeutics and Korea Aerospace
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Korea Aerospace 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 Korea Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Korea Aerospace Industries, you can compare the effects of market volatilities on AptaBio Therapeutics and Korea Aerospace 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 Korea Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Korea Aerospace.
Diversification Opportunities for AptaBio Therapeutics and Korea Aerospace
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AptaBio and Korea is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Korea Aerospace Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Aerospace Indu 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 Korea Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Aerospace Indu has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Korea Aerospace go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Korea Aerospace
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.49 times more return on investment than Korea Aerospace. However, AptaBio Therapeutics is 2.49 times more volatile than Korea Aerospace Industries. It trades about 0.05 of its potential returns per unit of risk. Korea Aerospace Industries is currently generating about 0.06 per unit of risk. If you would invest 574,000 in AptaBio Therapeutics on September 3, 2024 and sell it today you would earn a total of 78,000 from holding AptaBio Therapeutics or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Korea Aerospace Industries
Performance |
| Timeline |
| AptaBio Therapeutics |
| Korea Aerospace Indu |
AptaBio Therapeutics and Korea Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Korea Aerospace
The main advantage of trading using opposite AptaBio Therapeutics and Korea Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Korea Aerospace 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 Korea Aerospace will offset losses from the drop in Korea Aerospace's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Korea Aerospace vs. LG Display | Korea Aerospace vs. Hyundai Motor | Korea Aerospace vs. Hyundai Motor Co | Korea Aerospace vs. Hyundai Motor Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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