Correlation Between Apogee Therapeutics, and Consol Energy

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

Diversification Opportunities for Apogee Therapeutics, and Consol Energy

-0.25

Correlation Coefficient

Apogee Therapeutics,  Consol Energy

Very good diversification

The 3 months correlation between Apogee and Consol is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Consol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consol Energy 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 Consol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consol Energy has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Consol Energy go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Consol Energy

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 2.1 times more return on investment than Consol Energy. However, Apogee Therapeutics, is 2.1 times more volatile than Consol Energy. It trades about 0.03 of its potential returns per unit of risk. Consol Energy is currently generating about -0.28 per unit of risk. If you would invest  4,907  in Apogee Therapeutics, Common on October 9, 2024 and sell it today you would earn a total of  50.00  from holding Apogee Therapeutics, Common or generate 1.02% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Consol Energy

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 latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Consol Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Consol Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Consol Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apogee Therapeutics, and Consol Energy

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

The idea behind Apogee Therapeutics, Common and Consol Energy 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.