Correlation Between AptaBio Therapeutics and Dongkuk Structures
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Dongkuk Structures 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 Dongkuk Structures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Dongkuk Structures Construction, you can compare the effects of market volatilities on AptaBio Therapeutics and Dongkuk Structures 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 Dongkuk Structures. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Dongkuk Structures.
Diversification Opportunities for AptaBio Therapeutics and Dongkuk Structures
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Dongkuk is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Dongkuk Structures Constructio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongkuk Structures 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 Dongkuk Structures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongkuk Structures has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Dongkuk Structures go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Dongkuk Structures
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 1.74 times more return on investment than Dongkuk Structures. However, AptaBio Therapeutics is 1.74 times more volatile than Dongkuk Structures Construction. It trades about -0.01 of its potential returns per unit of risk. Dongkuk Structures Construction is currently generating about -0.06 per unit of risk. If you would invest 1,027,000 in AptaBio Therapeutics on September 4, 2024 and sell it today you would lose (407,000) from holding AptaBio Therapeutics or give up 39.63% 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. Dongkuk Structures Constructio
Performance |
| Timeline |
| AptaBio Therapeutics |
| Dongkuk Structures |
AptaBio Therapeutics and Dongkuk Structures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Dongkuk Structures
The main advantage of trading using opposite AptaBio Therapeutics and Dongkuk Structures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Dongkuk Structures 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 Dongkuk Structures will offset losses from the drop in Dongkuk Structures' long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Dongkuk Structures vs. LG Display | Dongkuk Structures vs. Hyundai Motor | Dongkuk Structures vs. Hyundai Motor Co | Dongkuk Structures vs. Hyundai Motor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |