Correlation Between Apogee Therapeutics, and Senmiao Technology

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

By analyzing existing cross correlation between Apogee Therapeutics, Common and Senmiao Technology, you can compare the effects of market volatilities on Apogee Therapeutics, and Senmiao Technology 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 Apogee Therapeutics, with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and Senmiao Technology.

Diversification Opportunities for Apogee Therapeutics, and Senmiao Technology

0.11

Correlation Coefficient

Apogee Therapeutics,  Senmiao Technology

Average diversification

The 3 months correlation between Apogee and Senmiao is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Apogee Therapeutics, 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 Apogee Therapeutics, Common are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Senmiao Technology go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Senmiao Technology

Given the investment horizon of 90 days Apogee Therapeutics, is expected to generate 6.52 times less return on investment than Senmiao Technology. In addition to that, Apogee Therapeutics, is 1.06 times more volatile than Senmiao Technology. It trades about 0.03 of its total potential returns per unit of risk. Senmiao Technology is currently generating about 0.21 per unit of volatility. If you would invest  88.00  in Senmiao Technology on October 10, 2024 and sell it today you would earn a total of  13.00  from holding Senmiao Technology or generate 14.77% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Senmiao Technology

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Senmiao Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Senmiao Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, Senmiao Technology may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Apogee Therapeutics, and Senmiao Technology

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

The idea behind Apogee Therapeutics, Common and Senmiao Technology 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.