Correlation Between SK Bioscience and APS Holdings
Can any of the company-specific risk be diversified away by investing in both SK Bioscience and APS Holdings 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 SK Bioscience and APS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and APS Holdings, you can compare the effects of market volatilities on SK Bioscience and APS Holdings 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 SK Bioscience with a short position of APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and APS Holdings.
Diversification Opportunities for SK Bioscience and APS Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 302440 and APS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings and SK Bioscience 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 SK Bioscience Co are associated (or correlated) with APS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Holdings has no effect on the direction of SK Bioscience i.e., SK Bioscience and APS Holdings go up and down completely randomly.
Pair Corralation between SK Bioscience and APS Holdings
Assuming the 90 days trading horizon SK Bioscience Co is expected to generate 1.78 times more return on investment than APS Holdings. However, SK Bioscience is 1.78 times more volatile than APS Holdings. It trades about -0.19 of its potential returns per unit of risk. APS Holdings is currently generating about -0.5 per unit of risk. If you would invest 5,460,000 in SK Bioscience Co on October 20, 2024 and sell it today you would lose (510,000) from holding SK Bioscience Co or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. APS Holdings
Performance |
| Timeline |
| SK Bioscience |
| APS Holdings |
SK Bioscience and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and APS Holdings
The main advantage of trading using opposite SK Bioscience and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience position performs unexpectedly, APS Holdings 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 APS Holdings will offset losses from the drop in APS Holdings' long position.| SK Bioscience vs. Samsung Biologics Co | SK Bioscience vs. Sk Biopharmaceuticals Co | SK Bioscience vs. ABL Bio | SK Bioscience vs. Green Cross Lab |
| APS Holdings vs. Korea New Network | APS Holdings vs. Dong A Eltek | APS Holdings vs. Dreamus Company | APS Holdings vs. SK Bioscience 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |