Correlation Between Apogee Therapeutics, and AlphaTime Acquisition

Can any of the company-specific risk be diversified away by investing in both Apogee Therapeutics, and AlphaTime Acquisition 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 AlphaTime Acquisition 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 AlphaTime Acquisition Corp, you can compare the effects of market volatilities on Apogee Therapeutics, and AlphaTime Acquisition 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 AlphaTime Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and AlphaTime Acquisition.

Diversification Opportunities for Apogee Therapeutics, and AlphaTime Acquisition

-0.28

Correlation Coefficient

Apogee Therapeutics,  AlphaTime Acquisition

Very good diversification

The 3 months correlation between Apogee and AlphaTime is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition 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 AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and AlphaTime Acquisition go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and AlphaTime Acquisition

Given the investment horizon of 90 days Apogee Therapeutics, is expected to generate 44.9 times less return on investment than AlphaTime Acquisition. But when comparing it to its historical volatility, Apogee Therapeutics, Common is 22.55 times less risky than AlphaTime Acquisition. It trades about 0.05 of its potential returns per unit of risk. AlphaTime Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  4.00  in AlphaTime Acquisition Corp on December 5, 2024 and sell it today you would lose (2.50) from holding AlphaTime Acquisition Corp or give up 62.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	46.6%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  AlphaTime Acquisition Corp

Apogee Therapeutics,

Risk-Adjusted Performance

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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AlphaTime Acquisition

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AlphaTime Acquisition Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, AlphaTime Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and AlphaTime Acquisition

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

The idea behind Apogee Therapeutics, Common and AlphaTime Acquisition Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.