Correlation Between ACAB Old and APTMU Old

Can any of the company-specific risk be diversified away by investing in both ACAB Old and APTMU Old 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 ACAB Old and APTMU Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACAB Old and APTMU Old, you can compare the effects of market volatilities on ACAB Old and APTMU Old 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 ACAB Old with a short position of APTMU Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACAB Old and APTMU Old.

Diversification Opportunities for ACAB Old and APTMU Old

-0.12

Correlation Coefficient

ACAB Old  APTMU Old

Good diversification

The 3 months correlation between ACAB and APTMU is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ACAB Old and APTMU Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APTMU Old and ACAB Old 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 ACAB Old are associated (or correlated) with APTMU Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APTMU Old has no effect on the direction of ACAB Old i.e., ACAB Old and APTMU Old go up and down completely randomly.

Pair Corralation between ACAB Old and APTMU Old

If you would invest  1,043  in APTMU Old on October 9, 2024 and sell it today you would earn a total of  0.00  from holding APTMU Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ACAB Old  vs.  APTMU Old

ACAB Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACAB Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

APTMU Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APTMU Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, APTMU Old is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ACAB Old and APTMU Old

The main advantage of trading using opposite ACAB Old and APTMU Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACAB Old position performs unexpectedly, APTMU Old 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 APTMU Old will offset losses from the drop in APTMU Old's long position.

The idea behind ACAB Old and APTMU Old 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.