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

-0.14

Correlation Coefficient

AppTech Payments  ImagineAR

Good diversification

The 3 months correlation between AppTech and ImagineAR is -0.14. 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 1.18 times more return on investment than ImagineAR. However, AppTech Payments is 1.18 times more volatile than ImagineAR. It trades about 0.13 of its potential returns per unit of risk. ImagineAR is currently generating about -0.04 per unit of risk. If you would invest  11.00  in AppTech Payments Corp on December 30, 2024 and sell it today you would earn a total of  8.00  from holding AppTech Payments Corp or generate 72.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

AppTech Payments Corp  vs.  ImagineAR

AppTech Payments Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AppTech Payments Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, AppTech Payments showed solid returns over the last few months and may actually be approaching a breakup point.

ImagineAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days ImagineAR 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 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 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.

The idea behind AppTech Payments Corp and ImagineAR 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..