Correlation Between First Industrial and Aptevo Therapeutics
Can any of the company-specific risk be diversified away by investing in both First Industrial and Aptevo 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 First Industrial and Aptevo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Aptevo Therapeutics, you can compare the effects of market volatilities on First Industrial and Aptevo 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 First Industrial with a short position of Aptevo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Aptevo Therapeutics.
Diversification Opportunities for First Industrial and Aptevo Therapeutics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Aptevo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Aptevo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptevo Therapeutics and First Industrial 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 First Industrial Realty are associated (or correlated) with Aptevo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptevo Therapeutics has no effect on the direction of First Industrial i.e., First Industrial and Aptevo Therapeutics go up and down completely randomly.
Pair Corralation between First Industrial and Aptevo Therapeutics
Allowing for the 90-day total investment horizon First Industrial Realty is expected to generate 0.14 times more return on investment than Aptevo Therapeutics. However, First Industrial Realty is 7.23 times less risky than Aptevo Therapeutics. It trades about 0.18 of its potential returns per unit of risk. Aptevo Therapeutics is currently generating about -0.01 per unit of risk. If you would invest 5,083 in First Industrial Realty on August 30, 2025 and sell it today you would earn a total of 641.00 from holding First Industrial Realty or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
First Industrial Realty vs. Aptevo Therapeutics
Performance |
| Timeline |
| First Industrial Realty |
| Aptevo Therapeutics |
First Industrial and Aptevo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Aptevo Therapeutics
The main advantage of trading using opposite First Industrial and Aptevo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Aptevo 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 Aptevo Therapeutics will offset losses from the drop in Aptevo Therapeutics' long position.| First Industrial vs. US GoldMining Common | First Industrial vs. Aldel Financial II | First Industrial vs. Copperbank Resources Corp | First Industrial vs. Mako Mining Corp |
| Aptevo Therapeutics vs. Pure Storage | Aptevo Therapeutics vs. Yuexiu Transport Infrastructure | Aptevo Therapeutics vs. Datadog | Aptevo Therapeutics vs. Telephone and Data |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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