Correlation Between AptaBio Therapeutics and Shinhan WTI
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Shinhan WTI 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 Shinhan WTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Shinhan WTI Futures, you can compare the effects of market volatilities on AptaBio Therapeutics and Shinhan WTI 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 Shinhan WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Shinhan WTI.
Diversification Opportunities for AptaBio Therapeutics and Shinhan WTI
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AptaBio and Shinhan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Shinhan WTI Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan WTI Futures 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 Shinhan WTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan WTI Futures has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Shinhan WTI go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Shinhan WTI
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Shinhan WTI. In addition to that, AptaBio Therapeutics is 2.72 times more volatile than Shinhan WTI Futures. It trades about -0.08 of its total potential returns per unit of risk. Shinhan WTI Futures is currently generating about -0.07 per unit of volatility. If you would invest 738,000 in Shinhan WTI Futures on September 24, 2024 and sell it today you would lose (14,000) from holding Shinhan WTI Futures or give up 1.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AptaBio Therapeutics vs. Shinhan WTI Futures
Performance |
Timeline |
AptaBio Therapeutics |
Shinhan WTI Futures |
AptaBio Therapeutics and Shinhan WTI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptaBio Therapeutics and Shinhan WTI
The main advantage of trading using opposite AptaBio Therapeutics and Shinhan WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Shinhan WTI 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 Shinhan WTI will offset losses from the drop in Shinhan WTI's long position.AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
Shinhan WTI vs. Samsung Electronics Co | Shinhan WTI vs. Samsung Electronics Co | Shinhan WTI vs. LG Energy Solution | Shinhan WTI vs. SK Hynix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |