Correlation Between Aptinyx and Benitec Biopharma

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

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

Diversification Opportunities for Aptinyx and Benitec Biopharma

-0.43

Correlation Coefficient

Aptinyx  Benitec Biopharma

Very good diversification

The 3 months correlation between Aptinyx and Benitec is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aptinyx and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Aptinyx 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 Aptinyx are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Aptinyx i.e., Aptinyx and Benitec Biopharma go up and down completely randomly.

Pair Corralation between Aptinyx and Benitec Biopharma

If you would invest  898.00  in Benitec Biopharma Ltd on August 31, 2024 and sell it today you would earn a total of  75.00  from holding Benitec Biopharma Ltd or generate 8.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Aptinyx  vs.  Benitec Biopharma Ltd

Aptinyx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aptinyx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aptinyx is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Benitec Biopharma

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Benitec Biopharma Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Benitec Biopharma exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aptinyx and Benitec Biopharma

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

The idea behind Aptinyx and Benitec Biopharma 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.