Correlation Between Apptech Corp and Optiva

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

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

Diversification Opportunities for Apptech Corp and Optiva

-0.36

Correlation Coefficient

Apptech Corp  Optiva

Very good diversification

The 3 months correlation between Apptech and Optiva is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apptech Corp and Optiva Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optiva Inc and Apptech Corp 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 Apptech Corp are associated (or correlated) with Optiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optiva Inc has no effect on the direction of Apptech Corp i.e., Apptech Corp and Optiva go up and down completely randomly.

Pair Corralation between Apptech Corp and Optiva

Given the investment horizon of 90 days Apptech Corp is expected to under-perform the Optiva. But the stock apears to be less risky and, when comparing its historical volatility, Apptech Corp is 1.69 times less risky than Optiva. The stock trades about -0.07 of its potential returns per unit of risk. The Optiva Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  215.00  in Optiva Inc on December 30, 2024 and sell it today you would lose (93.00) from holding Optiva Inc or give up 43.26% of portfolio value over 90 days.

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

Apptech Corp  vs.  Optiva Inc

Apptech Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apptech Corp 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Optiva Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Optiva Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Apptech Corp and Optiva

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

The idea behind Apptech Corp and Optiva Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.