Correlation Between Mirae Asset and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and AptaBio 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 Mirae Asset and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirae Asset Daewoo and AptaBio Therapeutics, you can compare the effects of market volatilities on Mirae Asset and AptaBio 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 Mirae Asset with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and AptaBio Therapeutics.
Diversification Opportunities for Mirae Asset and AptaBio Therapeutics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirae and AptaBio is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Mirae Asset 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 Mirae Asset Daewoo are associated (or correlated) with AptaBio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptaBio Therapeutics has no effect on the direction of Mirae Asset i.e., Mirae Asset and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Mirae Asset and AptaBio Therapeutics
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.4 times more return on investment than AptaBio Therapeutics. However, Mirae Asset Daewoo is 2.49 times less risky than AptaBio Therapeutics. It trades about 0.04 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.09 per unit of risk. If you would invest 386,500 in Mirae Asset Daewoo on September 25, 2024 and sell it today you would earn a total of 10,500 from holding Mirae Asset Daewoo or generate 2.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Mirae Asset Daewoo vs. AptaBio Therapeutics
Performance |
Timeline |
Mirae Asset Daewoo |
AptaBio Therapeutics |
Mirae Asset and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mirae Asset and AptaBio Therapeutics
The main advantage of trading using opposite Mirae Asset and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, AptaBio 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 AptaBio Therapeutics will offset losses from the drop in AptaBio Therapeutics' long position.Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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