Correlation Between Upstream Bio, and Aptevo Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Upstream Bio, 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 Upstream Bio, and Aptevo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upstream Bio, and Aptevo Therapeutics, you can compare the effects of market volatilities on Upstream Bio, 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 Upstream Bio, with a short position of Aptevo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstream Bio, and Aptevo Therapeutics.

Diversification Opportunities for Upstream Bio, and Aptevo Therapeutics

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Upstream and Aptevo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Upstream Bio, and Aptevo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptevo Therapeutics and Upstream Bio, 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 Upstream Bio, 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 Upstream Bio, i.e., Upstream Bio, and Aptevo Therapeutics go up and down completely randomly.

Pair Corralation between Upstream Bio, and Aptevo Therapeutics

Considering the 90-day investment horizon Upstream Bio, is expected to generate 0.62 times more return on investment than Aptevo Therapeutics. However, Upstream Bio, is 1.62 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 -0.04 per unit of risk. If you would invest  1,636  in Upstream Bio, on August 20, 2025 and sell it today you would earn a total of  934.00  from holding Upstream Bio, or generate 57.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Upstream Bio,  vs.  Aptevo Therapeutics

 Performance 
       Timeline  
Upstream Bio, 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Upstream Bio, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Upstream Bio, sustained solid returns over the last few months and may actually be approaching a breakup point.
Aptevo Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Aptevo Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Upstream Bio, and Aptevo Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Upstream Bio, and Aptevo Therapeutics

The main advantage of trading using opposite Upstream Bio, and Aptevo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upstream Bio, 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.
The idea behind Upstream Bio, and Aptevo Therapeutics 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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