Correlation Between Aptorum Group and Kiora Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Aptorum Group and Kiora Pharmaceuticals 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 Aptorum Group and Kiora Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptorum Group Ltd and Kiora Pharmaceuticals, you can compare the effects of market volatilities on Aptorum Group and Kiora Pharmaceuticals 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 Aptorum Group with a short position of Kiora Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptorum Group and Kiora Pharmaceuticals.
Diversification Opportunities for Aptorum Group and Kiora Pharmaceuticals
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aptorum and Kiora is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aptorum Group Ltd and Kiora Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiora Pharmaceuticals and Aptorum Group 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 Aptorum Group Ltd are associated (or correlated) with Kiora Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiora Pharmaceuticals has no effect on the direction of Aptorum Group i.e., Aptorum Group and Kiora Pharmaceuticals go up and down completely randomly.
Pair Corralation between Aptorum Group and Kiora Pharmaceuticals
Considering the 90-day investment horizon Aptorum Group Ltd is expected to under-perform the Kiora Pharmaceuticals. In addition to that, Aptorum Group is 2.39 times more volatile than Kiora Pharmaceuticals. It trades about -0.17 of its total potential returns per unit of risk. Kiora Pharmaceuticals is currently generating about 0.0 per unit of volatility. If you would invest 356.00 in Kiora Pharmaceuticals on September 4, 2024 and sell it today you would lose (12.00) from holding Kiora Pharmaceuticals or give up 3.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aptorum Group Ltd vs. Kiora Pharmaceuticals
Performance |
Timeline |
Aptorum Group |
Kiora Pharmaceuticals |
Aptorum Group and Kiora Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aptorum Group and Kiora Pharmaceuticals
The main advantage of trading using opposite Aptorum Group and Kiora Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptorum Group position performs unexpectedly, Kiora Pharmaceuticals 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 Kiora Pharmaceuticals will offset losses from the drop in Kiora Pharmaceuticals' long position.Aptorum Group vs. Candel Therapeutics | Aptorum Group vs. Cingulate Warrants | Aptorum Group vs. Unicycive Therapeutics | Aptorum Group vs. Cardio Diagnostics Holdings |
Kiora Pharmaceuticals vs. Candel Therapeutics | Kiora Pharmaceuticals vs. Cingulate Warrants | Kiora Pharmaceuticals vs. Unicycive Therapeutics | Kiora Pharmaceuticals vs. Cardio Diagnostics Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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