Correlation Between AptaBio Therapeutics and JC Chemical
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and JC Chemical 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 JC Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and JC Chemical Co, you can compare the effects of market volatilities on AptaBio Therapeutics and JC Chemical 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 JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and JC Chemical.
Diversification Opportunities for AptaBio Therapeutics and JC Chemical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and 137950 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical 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 JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and JC Chemical go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and JC Chemical
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the JC Chemical. But the stock apears to be less risky and, when comparing its historical volatility, AptaBio Therapeutics is 1.35 times less risky than JC Chemical. The stock trades about -0.34 of its potential returns per unit of risk. The JC Chemical Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 471,500 in JC Chemical Co on September 4, 2024 and sell it today you would lose (81,500) from holding JC Chemical Co or give up 17.29% 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. JC Chemical Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| JC Chemical |
AptaBio Therapeutics and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and JC Chemical
The main advantage of trading using opposite AptaBio Therapeutics and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| JC Chemical vs. Amogreentech Co | JC Chemical vs. Sangshin Electronics Co | JC Chemical vs. Samyang Foods Co | JC Chemical vs. Hwangkum Steel Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |