Correlation Between Aptorum Group and CalciMedica, Common

Can any of the company-specific risk be diversified away by investing in both Aptorum Group and CalciMedica, Common 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 Aptorum Group and CalciMedica, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptorum Group Ltd and CalciMedica, Common Stock, you can compare the effects of market volatilities on Aptorum Group and CalciMedica, Common 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 Aptorum Group with a short position of CalciMedica, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptorum Group and CalciMedica, Common.

Diversification Opportunities for Aptorum Group and CalciMedica, Common

0.67

Correlation Coefficient

Aptorum Group  CalciMedica, Common

Poor diversification

The 3 months correlation between Aptorum and CalciMedica, is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aptorum Group Ltd and CalciMedica, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CalciMedica, Common Stock and Aptorum Group 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 Aptorum Group Ltd are associated (or correlated) with CalciMedica, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CalciMedica, Common Stock has no effect on the direction of Aptorum Group i.e., Aptorum Group and CalciMedica, Common go up and down completely randomly.

Pair Corralation between Aptorum Group and CalciMedica, Common

Considering the 90-day investment horizon Aptorum Group Ltd is expected to generate 5.16 times more return on investment than CalciMedica, Common. However, Aptorum Group is 5.16 times more volatile than CalciMedica, Common Stock. It trades about 0.13 of its potential returns per unit of risk. CalciMedica, Common Stock is currently generating about -0.04 per unit of risk. If you would invest  136.00  in Aptorum Group Ltd on October 6, 2024 and sell it today you would earn a total of  78.00  from holding Aptorum Group Ltd or generate 57.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Aptorum Group Ltd  vs.  CalciMedica, Common Stock

Aptorum Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aptorum Group Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Aptorum Group displayed solid returns over the last few months and may actually be approaching a breakup point.

CalciMedica, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CalciMedica, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Aptorum Group and CalciMedica, Common

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

The idea behind Aptorum Group Ltd and CalciMedica, Common Stock 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.