Correlation Between Aptorum Group and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Aptorum Group and Generation Bio 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 Generation Bio 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 Generation Bio Co, you can compare the effects of market volatilities on Aptorum Group and Generation Bio 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 Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptorum Group and Generation Bio.
Diversification Opportunities for Aptorum Group and Generation Bio
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aptorum and Generation is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aptorum Group Ltd and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio 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 Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Aptorum Group i.e., Aptorum Group and Generation Bio go up and down completely randomly.
Pair Corralation between Aptorum Group and Generation Bio
Considering the 90-day investment horizon Aptorum Group Ltd is expected to generate 4.46 times more return on investment than Generation Bio. However, Aptorum Group is 4.46 times more volatile than Generation Bio Co. It trades about 0.05 of its potential returns per unit of risk. Generation Bio Co is currently generating about -0.01 per unit of risk. If you would invest 191.00 in Aptorum Group Ltd on October 5, 2024 and sell it today you would earn a total of 23.00 from holding Aptorum Group Ltd or generate 12.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.68% |
Values | Daily Returns |
Aptorum Group Ltd vs. Generation Bio Co
Performance |
Timeline |
Aptorum Group |
Generation Bio |
Aptorum Group and Generation Bio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aptorum Group and Generation Bio
The main advantage of trading using opposite Aptorum Group and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptorum Group position performs unexpectedly, Generation Bio 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 Generation Bio will offset losses from the drop in Generation Bio's long position.Aptorum Group vs. Surrozen | Aptorum Group vs. Unicycive Therapeutics | Aptorum Group vs. Armata Pharmaceuticals | Aptorum Group vs. AIM ImmunoTech |
Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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