Correlation Between NH Investment and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both NH Investment and AptaBio Therapeutics 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 NH Investment and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Investment Securities and AptaBio Therapeutics, you can compare the effects of market volatilities on NH Investment and AptaBio Therapeutics 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 NH Investment with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and AptaBio Therapeutics.
Diversification Opportunities for NH Investment and AptaBio Therapeutics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005940 and AptaBio is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and NH Investment 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 NH Investment Securities are associated (or correlated) with AptaBio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptaBio Therapeutics has no effect on the direction of NH Investment i.e., NH Investment and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between NH Investment and AptaBio Therapeutics
Assuming the 90 days trading horizon NH Investment is expected to generate 1.35 times less return on investment than AptaBio Therapeutics. But when comparing it to its historical volatility, NH Investment Securities is 1.27 times less risky than AptaBio Therapeutics. It trades about 0.06 of its potential returns per unit of risk. AptaBio Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 764,000 in AptaBio Therapeutics on September 2, 2025 and sell it today you would earn a total of 81,000 from holding AptaBio Therapeutics or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. AptaBio Therapeutics
Performance |
| Timeline |
| NH Investment Securities |
| AptaBio Therapeutics |
NH Investment and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and AptaBio Therapeutics
The main advantage of trading using opposite NH Investment and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, AptaBio Therapeutics 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 AptaBio Therapeutics will offset losses from the drop in AptaBio Therapeutics' long position.| NH Investment vs. Sungho Electronics Corp | NH Investment vs. DongBang Medical | NH Investment vs. Hanjin Transportation Co | NH Investment vs. Alton Sports CoLtd |
| AptaBio Therapeutics vs. NH Investment Securities | AptaBio Therapeutics vs. Top Material Co | AptaBio Therapeutics vs. Sangsangin Investment Securities | AptaBio Therapeutics vs. National Plastic 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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