Correlation Between AptaBio Therapeutics and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Shinhan Inverse 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 Shinhan Inverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Shinhan Inverse WTI, you can compare the effects of market volatilities on AptaBio Therapeutics and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Shinhan Inverse.
Diversification Opportunities for AptaBio Therapeutics and Shinhan Inverse
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AptaBio and Shinhan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Shinhan Inverse WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse WTI 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse WTI has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Shinhan Inverse go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Shinhan Inverse
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 2.39 times more return on investment than Shinhan Inverse. However, AptaBio Therapeutics is 2.39 times more volatile than Shinhan Inverse WTI. It trades about 0.0 of its potential returns per unit of risk. Shinhan Inverse WTI is currently generating about 0.0 per unit of risk. If you would invest 1,197,000 in AptaBio Therapeutics on November 27, 2024 and sell it today you would lose (406,000) from holding AptaBio Therapeutics or give up 33.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.56% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Shinhan Inverse WTI
Performance |
| Timeline |
| AptaBio Therapeutics |
| Shinhan Inverse WTI |
AptaBio Therapeutics and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Shinhan Inverse
The main advantage of trading using opposite AptaBio Therapeutics and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Shinhan Inverse vs. Innowireless Co | Shinhan Inverse vs. Kisan Telecom Co | Shinhan Inverse vs. Chorokbaem Healthcare Co | Shinhan Inverse vs. Nature and Environment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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