Correlation Between AptaBio Therapeutics and Humasis

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

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

Diversification Opportunities for AptaBio Therapeutics and Humasis

-0.5

Correlation Coefficient

AptaBio Therapeutics  Humasis

Very good diversification

The 3 months correlation between AptaBio and Humasis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Humasis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humasis and AptaBio 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 AptaBio Therapeutics are associated (or correlated) with Humasis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humasis has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Humasis go up and down completely randomly.

Pair Corralation between AptaBio Therapeutics and Humasis

Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 0.8 times more return on investment than Humasis. However, AptaBio Therapeutics is 1.25 times less risky than Humasis. It trades about -0.03 of its potential returns per unit of risk. Humasis Co is currently generating about -0.12 per unit of risk. If you would invest  636,000  in AptaBio Therapeutics on September 22, 2024 and sell it today you would lose (20,000) from holding AptaBio Therapeutics or give up 3.14% of portfolio value over 90 days.

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

AptaBio Therapeutics  vs.  Humasis Co

AptaBio Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AptaBio Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Humasis

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Humasis Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Humasis may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AptaBio Therapeutics and Humasis

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

The idea behind AptaBio Therapeutics and Humasis Co 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.