Correlation Between Dongwon Metal and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Dongwon Metal 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 Dongwon Metal and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon Metal Co and AptaBio Therapeutics, you can compare the effects of market volatilities on Dongwon Metal 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 Dongwon Metal with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon Metal and AptaBio Therapeutics.
Diversification Opportunities for Dongwon Metal and AptaBio Therapeutics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongwon and AptaBio is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon Metal Co and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Dongwon Metal 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 Dongwon Metal Co 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 Dongwon Metal i.e., Dongwon Metal and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Dongwon Metal and AptaBio Therapeutics
Assuming the 90 days trading horizon Dongwon Metal Co is expected to under-perform the AptaBio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Dongwon Metal Co is 2.3 times less risky than AptaBio Therapeutics. The stock trades about -0.08 of its potential returns per unit of risk. The 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 Together |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Dongwon Metal Co vs. AptaBio Therapeutics
Performance |
| Timeline |
| Dongwon Metal |
| AptaBio Therapeutics |
Dongwon Metal and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon Metal and AptaBio Therapeutics
The main advantage of trading using opposite Dongwon Metal and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon Metal 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.| Dongwon Metal vs. AptaBio Therapeutics | Dongwon Metal vs. Daewoo SBI SPAC | Dongwon Metal vs. Dream Security co | Dongwon Metal vs. Microfriend |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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