Correlation Between AptaBio Therapeutics and Daewon Media
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Daewon Media 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 Daewon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Daewon Media Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Daewon Media 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 Daewon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Daewon Media.
Diversification Opportunities for AptaBio Therapeutics and Daewon Media
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Daewon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Daewon Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewon Media 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 Daewon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewon Media has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Daewon Media go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Daewon Media
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.03 times more return on investment than Daewon Media. However, AptaBio Therapeutics is 2.03 times more volatile than Daewon Media Co. It trades about 0.01 of its potential returns per unit of risk. Daewon Media Co is currently generating about -0.04 per unit of risk. If you would invest 1,003,000 in AptaBio Therapeutics on November 19, 2024 and sell it today you would lose (141,000) from holding AptaBio Therapeutics or give up 14.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Daewon Media Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Daewon Media |
AptaBio Therapeutics and Daewon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Daewon Media
The main advantage of trading using opposite AptaBio Therapeutics and Daewon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Daewon Media 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 Daewon Media will offset losses from the drop in Daewon Media's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Daewon Media vs. INFINITT Healthcare Co | Daewon Media vs. Industrial Bank | Daewon Media vs. KakaoBank Corp | Daewon Media vs. Dongbu Insurance 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |