Correlation Between AppTech Payments and ImagineAR
Can any of the company-specific risk be diversified away by investing in both AppTech Payments and ImagineAR 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 ImagineAR 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 ImagineAR, you can compare the effects of market volatilities on AppTech Payments and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppTech Payments and ImagineAR.
Diversification Opportunities for AppTech Payments and ImagineAR
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AppTech and ImagineAR is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of AppTech Payments i.e., AppTech Payments and ImagineAR go up and down completely randomly.
Pair Corralation between AppTech Payments and ImagineAR
Assuming the 90 days horizon AppTech Payments Corp is expected to generate 1.77 times more return on investment than ImagineAR. However, AppTech Payments is 1.77 times more volatile than ImagineAR. It trades about 0.08 of its potential returns per unit of risk. ImagineAR is currently generating about 0.02 per unit of risk. If you would invest 18.00 in AppTech Payments Corp on December 2, 2024 and sell it today you would earn a total of 0.00 from holding AppTech Payments Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.33% |
Values | Daily Returns |
AppTech Payments Corp vs. ImagineAR
Performance |
Timeline |
AppTech Payments Corp |
ImagineAR |
AppTech Payments and ImagineAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AppTech Payments and ImagineAR
The main advantage of trading using opposite AppTech Payments and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppTech Payments position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR'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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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