Correlation Between Aptamer Group and Overstock
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and Overstock 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 Overstock 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 Overstock, you can compare the effects of market volatilities on Aptamer Group and Overstock 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 Overstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Overstock.
Diversification Opportunities for Aptamer Group and Overstock
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aptamer and Overstock is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and Overstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Overstock 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 Overstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Overstock has no effect on the direction of Aptamer Group i.e., Aptamer Group and Overstock go up and down completely randomly.
Pair Corralation between Aptamer Group and Overstock
Assuming the 90 days trading horizon Aptamer Group PLC is expected to under-perform the Overstock. In addition to that, Aptamer Group is 1.68 times more volatile than Overstock. It trades about -0.06 of its total potential returns per unit of risk. Overstock is currently generating about 0.0 per unit of volatility. If you would invest 1,799 in Overstock on November 1, 2024 and sell it today you would lose (966.00) from holding Overstock or give up 53.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.76% |
| Values | Daily Returns |
Aptamer Group PLC vs. Overstock
Performance |
| Timeline |
| Aptamer Group PLC |
| Overstock |
Aptamer Group and Overstock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and Overstock
The main advantage of trading using opposite Aptamer Group and Overstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, Overstock 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 Overstock will offset losses from the drop in Overstock's long position.| Aptamer Group vs. Zoom Video Communications | Aptamer Group vs. Livermore Investments Group | Aptamer Group vs. EJF Investments | Aptamer Group vs. New Residential Investment |
| Overstock vs. Check Point Software | Overstock vs. TBC Bank Group | Overstock vs. Sydbank | Overstock vs. Nordea Bank Abp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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