Correlation Between Aptamer Group and United Internet
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and United Internet 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 Aptamer Group and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptamer Group PLC and United Internet AG, you can compare the effects of market volatilities on Aptamer Group and United Internet 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 Aptamer Group with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and United Internet.
Diversification Opportunities for Aptamer Group and United Internet
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aptamer and United is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Aptamer Group 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 Aptamer Group PLC are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Aptamer Group i.e., Aptamer Group and United Internet go up and down completely randomly.
Pair Corralation between Aptamer Group and United Internet
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 3.28 times more return on investment than United Internet. However, Aptamer Group is 3.28 times more volatile than United Internet AG. It trades about 0.2 of its potential returns per unit of risk. United Internet AG is currently generating about -0.02 per unit of risk. If you would invest 36.00 in Aptamer Group PLC on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Aptamer Group PLC or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aptamer Group PLC vs. United Internet AG
Performance |
| Timeline |
| Aptamer Group PLC |
| United Internet AG |
Aptamer Group and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and United Internet
The main advantage of trading using opposite Aptamer Group and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Toyota Motor Corp | Aptamer Group vs. Reliance Industries Ltd |
| United Internet vs. Ubisoft Entertainment | United Internet vs. Zinc Media Group | United Internet vs. Blackrock World Mining | United Internet vs. Atalaya Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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