Correlation Between AptaBio Therapeutics and Chin Yang
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Chin Yang 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 Chin Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Chin Yang Chemical, you can compare the effects of market volatilities on AptaBio Therapeutics and Chin Yang 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 Chin Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Chin Yang.
Diversification Opportunities for AptaBio Therapeutics and Chin Yang
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AptaBio and Chin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Chin Yang Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chin Yang Chemical 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 Chin Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chin Yang Chemical has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Chin Yang go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Chin Yang
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Chin Yang. But the stock apears to be less risky and, when comparing its historical volatility, AptaBio Therapeutics is 1.09 times less risky than Chin Yang. The stock trades about -0.27 of its potential returns per unit of risk. The Chin Yang Chemical is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 271,500 in Chin Yang Chemical on August 29, 2024 and sell it today you would lose (36,500) from holding Chin Yang Chemical or give up 13.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Chin Yang Chemical
Performance |
| Timeline |
| AptaBio Therapeutics |
| Chin Yang Chemical |
AptaBio Therapeutics and Chin Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Chin Yang
The main advantage of trading using opposite AptaBio Therapeutics and Chin Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Chin Yang 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 Chin Yang will offset losses from the drop in Chin Yang's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec | AptaBio Therapeutics vs. Busan Industrial Co |
| Chin Yang vs. Dongbang Transport Logistics | Chin Yang vs. Woori Technology Investment | Chin Yang vs. Korea Investment Holdings | Chin Yang vs. Kukil Metal 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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