Correlation Between Malvern International and Aptamer Group

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

By analyzing existing cross correlation between Malvern International and Aptamer Group PLC, you can compare the effects of market volatilities on Malvern International and Aptamer Group 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 Malvern International with a short position of Aptamer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malvern International and Aptamer Group.

Diversification Opportunities for Malvern International and Aptamer Group

0.29

Correlation Coefficient

Malvern International  Aptamer Group

Modest diversification

The 3 months correlation between Malvern and Aptamer is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Malvern International and Aptamer Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptamer Group PLC and Malvern International 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 Malvern International are associated (or correlated) with Aptamer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptamer Group PLC has no effect on the direction of Malvern International i.e., Malvern International and Aptamer Group go up and down completely randomly.

Pair Corralation between Malvern International and Aptamer Group

Assuming the 90 days trading horizon Malvern International is expected to generate 0.48 times more return on investment than Aptamer Group. However, Malvern International is 2.09 times less risky than Aptamer Group. It trades about 0.02 of its potential returns per unit of risk. Aptamer Group PLC is currently generating about -0.1 per unit of risk. If you would invest  2,050  in Malvern International on December 29, 2024 and sell it today you would earn a total of  25.00  from holding Malvern International or generate 1.22% return on investment over 90 days.

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

Malvern International  vs.  Aptamer Group PLC

Malvern International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Malvern International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Malvern International is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Aptamer Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aptamer Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Malvern International and Aptamer Group

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

The idea behind Malvern International and Aptamer Group PLC 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.