Correlation Between AppTech Payments and Informatica
Can any of the company-specific risk be diversified away by investing in both AppTech Payments and Informatica 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 Payments and Informatica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppTech Payments Corp and Informatica, you can compare the effects of market volatilities on AppTech Payments and Informatica 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 Payments with a short position of Informatica. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppTech Payments and Informatica.
Diversification Opportunities for AppTech Payments and Informatica
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AppTech and Informatica is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Informatica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica and AppTech Payments 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 Payments Corp are associated (or correlated) with Informatica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica has no effect on the direction of AppTech Payments i.e., AppTech Payments and Informatica go up and down completely randomly.
Pair Corralation between AppTech Payments and Informatica
Assuming the 90 days horizon AppTech Payments Corp is expected to generate 3.38 times more return on investment than Informatica. However, AppTech Payments is 3.38 times more volatile than Informatica. It trades about 0.14 of its potential returns per unit of risk. Informatica is currently generating about -0.17 per unit of risk. If you would invest 12.00 in AppTech Payments Corp on December 2, 2024 and sell it today you would earn a total of 6.00 from holding AppTech Payments Corp or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AppTech Payments Corp vs. Informatica
Performance |
Timeline |
AppTech Payments Corp |
Informatica |
AppTech Payments and Informatica Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AppTech Payments and Informatica
The main advantage of trading using opposite AppTech Payments and Informatica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppTech Payments position performs unexpectedly, Informatica 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 Informatica will offset losses from the drop in Informatica's long position.AppTech Payments vs. American Rebel Holdings | AppTech Payments vs. bioAffinity Technologies Warrant | AppTech Payments vs. TC BioPharm plc | AppTech Payments vs. NextNav Warrant |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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