Correlation Between Apptech Corp and Glimpse

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

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

Diversification Opportunities for Apptech Corp and Glimpse

0.48

Correlation Coefficient

Apptech Corp  Glimpse

Very weak diversification

The 3 months correlation between Apptech and Glimpse is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apptech Corp and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group 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 Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of Apptech Corp i.e., Apptech Corp and Glimpse go up and down completely randomly.

Pair Corralation between Apptech Corp and Glimpse

Given the investment horizon of 90 days Apptech Corp is expected to generate 1.13 times more return on investment than Glimpse. However, Apptech Corp is 1.13 times more volatile than Glimpse Group. It trades about -0.07 of its potential returns per unit of risk. Glimpse Group is currently generating about -0.19 per unit of risk. If you would invest  64.00  in Apptech Corp on December 30, 2024 and sell it today you would lose (22.00) from holding Apptech Corp or give up 34.37% of portfolio value over 90 days.

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

Apptech Corp  vs.  Glimpse Group

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.

Glimpse Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glimpse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Apptech Corp and Glimpse

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

The idea behind Apptech Corp and Glimpse Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.