Correlation Between Serina Therapeutics and Aptorum Group

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Can any of the company-specific risk be diversified away by investing in both Serina Therapeutics 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 Serina Therapeutics and Aptorum Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Serina Therapeutics and Aptorum Group Ltd, you can compare the effects of market volatilities on Serina Therapeutics 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 Serina Therapeutics with a short position of Aptorum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serina Therapeutics and Aptorum Group.

Diversification Opportunities for Serina Therapeutics and Aptorum Group

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Serina and Aptorum is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Serina Therapeutics and Aptorum Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptorum Group and Serina 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 Serina Therapeutics 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 Serina Therapeutics i.e., Serina Therapeutics and Aptorum Group go up and down completely randomly.

Pair Corralation between Serina Therapeutics and Aptorum Group

Considering the 90-day investment horizon Serina Therapeutics is expected to under-perform the Aptorum Group. But the stock apears to be less risky and, when comparing its historical volatility, Serina Therapeutics is 2.28 times less risky than Aptorum Group. The stock trades about -0.06 of its potential returns per unit of risk. The Aptorum Group Ltd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  175.00  in Aptorum Group Ltd on October 23, 2024 and sell it today you would lose (60.00) from holding Aptorum Group Ltd or give up 34.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Serina Therapeutics  vs.  Aptorum Group Ltd

 Performance 
       Timeline  
Serina Therapeutics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Aptorum Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Aptorum Group Ltd are ranked lower than 2 (%) 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.

Serina Therapeutics and Aptorum Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Serina Therapeutics and Aptorum Group

The main advantage of trading using opposite Serina Therapeutics and Aptorum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serina Therapeutics 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 Serina Therapeutics 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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