Correlation Between AptaBio Therapeutics and Sang A
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Sang A 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 Sang A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Sang A Frontec CoLtd, you can compare the effects of market volatilities on AptaBio Therapeutics and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Sang A.
Diversification Opportunities for AptaBio Therapeutics and Sang A
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Sang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Sang A go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Sang A
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 1.77 times more return on investment than Sang A. However, AptaBio Therapeutics is 1.77 times more volatile than Sang A Frontec CoLtd. It trades about 0.18 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.22 per unit of risk. If you would invest 637,000 in AptaBio Therapeutics on October 29, 2024 and sell it today you would earn a total of 69,000 from holding AptaBio Therapeutics or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| AptaBio Therapeutics |
| Sang A Frontec |
AptaBio Therapeutics and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Sang A
The main advantage of trading using opposite AptaBio Therapeutics and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Sang A vs. Hana Financial | Sang A vs. Lotte Non Life Insurance | Sang A vs. Korean Reinsurance Co | Sang A vs. Lotte Chilsung Beverage |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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