Correlation Between Apogee Therapeutics, and Federal National

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

Diversification Opportunities for Apogee Therapeutics, and Federal National

-0.66

Correlation Coefficient

Apogee Therapeutics,  Federal National

Excellent diversification

The 3 months correlation between Apogee and Federal is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Federal National Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal National Mortgage 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 Federal National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal National Mortgage has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Federal National go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Federal National

Given the investment horizon of 90 days Apogee Therapeutics, is expected to generate 22.72 times less return on investment than Federal National. But when comparing it to its historical volatility, Apogee Therapeutics, Common is 3.0 times less risky than Federal National. It trades about 0.04 of its potential returns per unit of risk. Federal National Mortgage is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  281.00  in Federal National Mortgage on October 11, 2024 and sell it today you would earn a total of  217.00  from holding Federal National Mortgage or generate 77.22% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Federal National Mortgage

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 unfluctuating 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.

Federal National Mortgage

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Federal National Mortgage are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady primary indicators, Federal National sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and Federal National

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

The idea behind Apogee Therapeutics, Common and Federal National Mortgage 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.