Correlation Between AptaBio Therapeutics and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on AptaBio Therapeutics and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and SEOJEON ELECTRIC.
Diversification Opportunities for AptaBio Therapeutics and SEOJEON ELECTRIC
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AptaBio and SEOJEON is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and SEOJEON ELECTRIC
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the SEOJEON ELECTRIC. In addition to that, AptaBio Therapeutics is 1.15 times more volatile than SEOJEON ELECTRIC MACHINERY. It trades about -0.02 of its total potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about -0.01 per unit of volatility. If you would invest 550,000 in SEOJEON ELECTRIC MACHINERY on October 4, 2024 and sell it today you would lose (161,500) from holding SEOJEON ELECTRIC MACHINERY or give up 29.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AptaBio Therapeutics vs. SEOJEON ELECTRIC MACHINERY
Performance |
Timeline |
AptaBio Therapeutics |
SEOJEON ELECTRIC MAC |
AptaBio Therapeutics and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptaBio Therapeutics and SEOJEON ELECTRIC
The main advantage of trading using opposite AptaBio Therapeutics and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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