Correlation Between AptaBio Therapeutics and HYUNDAI BIOLAND
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and HYUNDAI BIOLAND 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 HYUNDAI BIOLAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and HYUNDAI BIOLAND CoLtd, you can compare the effects of market volatilities on AptaBio Therapeutics and HYUNDAI BIOLAND 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 HYUNDAI BIOLAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and HYUNDAI BIOLAND.
Diversification Opportunities for AptaBio Therapeutics and HYUNDAI BIOLAND
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and HYUNDAI is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and HYUNDAI BIOLAND CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYUNDAI BIOLAND CoLtd 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 HYUNDAI BIOLAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYUNDAI BIOLAND CoLtd has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and HYUNDAI BIOLAND go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and HYUNDAI BIOLAND
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 18.33 times less return on investment than HYUNDAI BIOLAND. In addition to that, AptaBio Therapeutics is 1.63 times more volatile than HYUNDAI BIOLAND CoLtd. It trades about 0.0 of its total potential returns per unit of risk. HYUNDAI BIOLAND CoLtd is currently generating about 0.0 per unit of volatility. If you would invest 481,595 in HYUNDAI BIOLAND CoLtd on August 29, 2024 and sell it today you would lose (46,095) from holding HYUNDAI BIOLAND CoLtd or give up 9.57% 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. HYUNDAI BIOLAND CoLtd
Performance |
| Timeline |
| AptaBio Therapeutics |
| HYUNDAI BIOLAND CoLtd |
AptaBio Therapeutics and HYUNDAI BIOLAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and HYUNDAI BIOLAND
The main advantage of trading using opposite AptaBio Therapeutics and HYUNDAI BIOLAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, HYUNDAI BIOLAND 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 HYUNDAI BIOLAND will offset losses from the drop in HYUNDAI BIOLAND's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec | AptaBio Therapeutics vs. Busan Industrial Co |
| HYUNDAI BIOLAND vs. Samsung Electronics Co | HYUNDAI BIOLAND vs. Samsung Electronics Co | HYUNDAI BIOLAND vs. Hyundai Motor Co | HYUNDAI BIOLAND vs. Hyundai Motor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |