Correlation Between AptaBio Therapeutics and Mobase Electronics
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Mobase Electronics 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 Mobase Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Mobase Electronics CoLtd, you can compare the effects of market volatilities on AptaBio Therapeutics and Mobase Electronics 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 Mobase Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Mobase Electronics.
Diversification Opportunities for AptaBio Therapeutics and Mobase Electronics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Mobase is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Mobase Electronics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobase Electronics CoLtd 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 Mobase Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobase Electronics CoLtd has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Mobase Electronics go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Mobase Electronics
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to generate 6.0 times less return on investment than Mobase Electronics. In addition to that, AptaBio Therapeutics is 1.34 times more volatile than Mobase Electronics CoLtd. It trades about 0.01 of its total potential returns per unit of risk. Mobase Electronics CoLtd is currently generating about 0.06 per unit of volatility. If you would invest 189,700 in Mobase Electronics CoLtd on February 15, 2024 and sell it today you would earn a total of 8,900 from holding Mobase Electronics CoLtd or generate 4.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AptaBio Therapeutics vs. Mobase Electronics CoLtd
Performance |
Timeline |
AptaBio Therapeutics |
Mobase Electronics CoLtd |
AptaBio Therapeutics and Mobase Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AptaBio Therapeutics and Mobase Electronics
The main advantage of trading using opposite AptaBio Therapeutics and Mobase Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Mobase Electronics 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 Mobase Electronics will offset losses from the drop in Mobase Electronics' long position.AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
Mobase Electronics vs. Samsung Electronics Co | Mobase Electronics vs. Samsung Electronics Co | Mobase Electronics vs. Hyundai Motor Co | Mobase Electronics vs. Hyundai Motor Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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