Correlation Between Aptamer Group and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and Wheaton Precious 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 Wheaton Precious 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 Wheaton Precious Metals, you can compare the effects of market volatilities on Aptamer Group and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Wheaton Precious.
Diversification Opportunities for Aptamer Group and Wheaton Precious
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptamer and Wheaton is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Aptamer Group i.e., Aptamer Group and Wheaton Precious go up and down completely randomly.
Pair Corralation between Aptamer Group and Wheaton Precious
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 2.98 times more return on investment than Wheaton Precious. However, Aptamer Group is 2.98 times more volatile than Wheaton Precious Metals. It trades about 0.17 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.22 per unit of risk. If you would invest 37.00 in Aptamer Group PLC on November 2, 2024 and sell it today you would earn a total of 6.00 from holding Aptamer Group PLC or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aptamer Group PLC vs. Wheaton Precious Metals
Performance |
| Timeline |
| Aptamer Group PLC |
| Wheaton Precious Metals |
Aptamer Group and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and Wheaton Precious
The main advantage of trading using opposite Aptamer Group and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Aptamer Group vs. Fevertree Drinks Plc | Aptamer Group vs. Ebro Foods | Aptamer Group vs. Fresenius Medical Care | Aptamer Group vs. Ashtead Technology Holdings |
| Wheaton Precious vs. Empire Metals Limited | Wheaton Precious vs. New Residential Investment | Wheaton Precious vs. Kinnevik Investment AB | Wheaton Precious vs. GreenX Metals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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