Correlation Between Apogee Therapeutics, and Cidara Therapeutics

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

Diversification Opportunities for Apogee Therapeutics, and Cidara Therapeutics

-0.65

Correlation Coefficient

Apogee Therapeutics,  Cidara Therapeutics

Excellent diversification

The 3 months correlation between Apogee and Cidara is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Cidara Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cidara Therapeutics 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 Cidara Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cidara Therapeutics has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Cidara Therapeutics go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Cidara Therapeutics

Given the investment horizon of 90 days Apogee Therapeutics, is expected to generate 30.07 times less return on investment than Cidara Therapeutics. But when comparing it to its historical volatility, Apogee Therapeutics, Common is 1.26 times less risky than Cidara Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Cidara Therapeutics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,132  in Cidara Therapeutics on September 4, 2024 and sell it today you would earn a total of  744.00  from holding Cidara Therapeutics or generate 65.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  Cidara Therapeutics

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.

Cidara Therapeutics

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cidara Therapeutics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cidara Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and Cidara Therapeutics

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

The idea behind Apogee Therapeutics, Common and Cidara Therapeutics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.