Correlation Between Nuintek CoLtd and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nuintek CoLtd 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 Nuintek CoLtd and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuintek CoLtd and AptaBio Therapeutics, you can compare the effects of market volatilities on Nuintek CoLtd 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 Nuintek CoLtd with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuintek CoLtd and AptaBio Therapeutics.
Diversification Opportunities for Nuintek CoLtd and AptaBio Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuintek and AptaBio is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nuintek CoLtd and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Nuintek CoLtd 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 Nuintek CoLtd 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 Nuintek CoLtd i.e., Nuintek CoLtd and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Nuintek CoLtd and AptaBio Therapeutics
Assuming the 90 days trading horizon Nuintek CoLtd is expected to generate 0.49 times more return on investment than AptaBio Therapeutics. However, Nuintek CoLtd is 2.06 times less risky than AptaBio Therapeutics. It trades about -0.13 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.11 per unit of risk. If you would invest 56,400 in Nuintek CoLtd on September 23, 2024 and sell it today you would lose (7,500) from holding Nuintek CoLtd or give up 13.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nuintek CoLtd vs. AptaBio Therapeutics
Performance |
Timeline |
Nuintek CoLtd |
AptaBio Therapeutics |
Nuintek CoLtd and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuintek CoLtd and AptaBio Therapeutics
The main advantage of trading using opposite Nuintek CoLtd and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuintek CoLtd 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.Nuintek CoLtd vs. Dongsin Engineering Construction | Nuintek CoLtd vs. Doosan Fuel Cell | Nuintek CoLtd vs. Daishin Balance 1 | Nuintek CoLtd vs. Total Soft Bank |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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