Correlation Between AptaBio Therapeutics and Korea Computer

Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Korea Computer 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 AptaBio Therapeutics and Korea Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AptaBio Therapeutics and Korea Computer Systems, you can compare the effects of market volatilities on AptaBio Therapeutics and Korea Computer 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 AptaBio Therapeutics with a short position of Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Korea Computer.

Diversification Opportunities for AptaBio Therapeutics and Korea Computer

0.0

Correlation Coefficient

AptaBio Therapeutics  Korea Computer

Pay attention - limited upside

The 3 months correlation between AptaBio and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Korea Computer Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer Systems and AptaBio Therapeutics 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 AptaBio Therapeutics are associated (or correlated) with Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer Systems has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Korea Computer go up and down completely randomly.

Pair Corralation between AptaBio Therapeutics and Korea Computer

If you would invest  659,000  in AptaBio Therapeutics on December 4, 2024 and sell it today you would earn a total of  93,000  from holding AptaBio Therapeutics or generate 14.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AptaBio Therapeutics  vs.  Korea Computer Systems

AptaBio Therapeutics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AptaBio Therapeutics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AptaBio Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Korea Computer Systems

Risk-Adjusted Performance

OK

Over the last 90 days Korea Computer Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Korea Computer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AptaBio Therapeutics and Korea Computer

The main advantage of trading using opposite AptaBio Therapeutics and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Korea Computer 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 Korea Computer will offset losses from the drop in Korea Computer's long position.

The idea behind AptaBio Therapeutics and Korea Computer Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.