Correlation Between Replimune and Aptorum Group

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

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

Diversification Opportunities for Replimune and Aptorum Group

-0.37

Correlation Coefficient

Replimune  Aptorum Group

Very good diversification

The 3 months correlation between Replimune and Aptorum is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and Aptorum Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptorum Group and Replimune 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 Replimune Group are associated (or correlated) with Aptorum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptorum Group has no effect on the direction of Replimune i.e., Replimune and Aptorum Group go up and down completely randomly.

Pair Corralation between Replimune and Aptorum Group

Given the investment horizon of 90 days Replimune is expected to generate 9.41 times less return on investment than Aptorum Group. But when comparing it to its historical volatility, Replimune Group is 3.25 times less risky than Aptorum Group. It trades about 0.05 of its potential returns per unit of risk. Aptorum Group Ltd is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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 Against
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Replimune Group  vs.  Aptorum Group Ltd

Replimune Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Replimune Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Replimune disclosed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Replimune and Aptorum Group

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

The idea behind Replimune Group and Aptorum Group Ltd 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.