Correlation Between Doosan Heavy and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Doosan Heavy 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 Doosan Heavy and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan Heavy Ind and AptaBio Therapeutics, you can compare the effects of market volatilities on Doosan Heavy 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 Doosan Heavy with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Heavy and AptaBio Therapeutics.
Diversification Opportunities for Doosan Heavy and AptaBio Therapeutics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Doosan and AptaBio is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Heavy Ind and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Doosan Heavy 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 Doosan Heavy Ind 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 Doosan Heavy i.e., Doosan Heavy and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Doosan Heavy and AptaBio Therapeutics
Assuming the 90 days trading horizon Doosan Heavy Ind is expected to under-perform the AptaBio Therapeutics. In addition to that, Doosan Heavy is 1.14 times more volatile than AptaBio Therapeutics. It trades about -0.23 of its total potential returns per unit of risk. AptaBio Therapeutics is currently generating about -0.08 per unit of volatility. If you would invest 661,000 in AptaBio Therapeutics on October 4, 2024 and sell it today you would lose (34,000) from holding AptaBio Therapeutics or give up 5.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Doosan Heavy Ind vs. AptaBio Therapeutics
Performance |
Timeline |
Doosan Heavy Ind |
AptaBio Therapeutics |
Doosan Heavy and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Doosan Heavy and AptaBio Therapeutics
The main advantage of trading using opposite Doosan Heavy and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Heavy 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.Doosan Heavy vs. PJ Metal Co | Doosan Heavy vs. Formetal Co | Doosan Heavy vs. Daiyang Metal Co | Doosan Heavy vs. Industrial Bank |
AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |