Correlation Between Histogen and Aptevo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Histogen and Aptevo Therapeutics 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 Histogen and Aptevo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Aptevo Therapeutics, you can compare the effects of market volatilities on Histogen and Aptevo Therapeutics 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 Histogen with a short position of Aptevo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Aptevo Therapeutics.
Diversification Opportunities for Histogen and Aptevo Therapeutics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Histogen and Aptevo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Aptevo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptevo Therapeutics and Histogen 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 Histogen are associated (or correlated) with Aptevo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptevo Therapeutics has no effect on the direction of Histogen i.e., Histogen and Aptevo Therapeutics go up and down completely randomly.
Pair Corralation between Histogen and Aptevo Therapeutics
Given the investment horizon of 90 days Histogen is expected to under-perform the Aptevo Therapeutics. In addition to that, Histogen is 1.91 times more volatile than Aptevo Therapeutics. It trades about -0.3 of its total potential returns per unit of risk. Aptevo Therapeutics is currently generating about 0.16 per unit of volatility. If you would invest 24.00 in Aptevo Therapeutics on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Aptevo Therapeutics or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histogen vs. Aptevo Therapeutics
Performance |
| Timeline |
| Histogen |
| Aptevo Therapeutics |
Histogen and Aptevo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Aptevo Therapeutics
The main advantage of trading using opposite Histogen and Aptevo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, Aptevo Therapeutics 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 Aptevo Therapeutics will offset losses from the drop in Aptevo Therapeutics' long position.| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo Biosciences |
| Aptevo Therapeutics vs. Kronos Bio | Aptevo Therapeutics vs. Cyclerion Therapeutics | Aptevo Therapeutics vs. Larimar Therapeutics | Aptevo Therapeutics vs. Addex Therapeutics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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