Correlation Between AptaBio Therapeutics and Nasmedia
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Nasmedia 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 Nasmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Nasmedia Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Nasmedia 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 Nasmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Nasmedia.
Diversification Opportunities for AptaBio Therapeutics and Nasmedia
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Nasmedia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Nasmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasmedia 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 Nasmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasmedia has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Nasmedia go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Nasmedia
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.28 times more return on investment than Nasmedia. However, AptaBio Therapeutics is 2.28 times more volatile than Nasmedia Co. It trades about 0.0 of its potential returns per unit of risk. Nasmedia Co is currently generating about -0.02 per unit of risk. If you would invest 893,000 in AptaBio Therapeutics on August 25, 2024 and sell it today you would lose (265,000) from holding AptaBio Therapeutics or give up 29.68% 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. Nasmedia Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Nasmedia |
AptaBio Therapeutics and Nasmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Nasmedia
The main advantage of trading using opposite AptaBio Therapeutics and Nasmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Nasmedia 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 Nasmedia will offset losses from the drop in Nasmedia's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Nasmedia vs. Busan Industrial Co | Nasmedia vs. Samlip General Foods | Nasmedia vs. Shinsegae Food | Nasmedia vs. CJ Seafood Corp |
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.
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