Correlation Between AptaBio Therapeutics and Seegene
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Seegene 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 Seegene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Seegene, you can compare the effects of market volatilities on AptaBio Therapeutics and Seegene 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 Seegene. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Seegene.
Diversification Opportunities for AptaBio Therapeutics and Seegene
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AptaBio and Seegene is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene 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 Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Seegene go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Seegene
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.58 times less return on investment than Seegene. In addition to that, AptaBio Therapeutics is 1.4 times more volatile than Seegene. It trades about 0.0 of its total potential returns per unit of risk. Seegene is currently generating about 0.02 per unit of volatility. If you would invest 2,376,924 in Seegene on September 3, 2024 and sell it today you would lose (26,924) from holding Seegene or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Seegene
Performance |
| Timeline |
| AptaBio Therapeutics |
| Seegene |
AptaBio Therapeutics and Seegene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Seegene
The main advantage of trading using opposite AptaBio Therapeutics and Seegene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Seegene 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 Seegene will offset losses from the drop in Seegene's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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