Correlation Between Apogee Therapeutics, and Kaiser Aluminum

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

Diversification Opportunities for Apogee Therapeutics, and Kaiser Aluminum

-0.25

Correlation Coefficient

Apogee Therapeutics,  Kaiser Aluminum

Very good diversification

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

Pair Corralation between Apogee Therapeutics, and Kaiser Aluminum

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 1.36 times more return on investment than Kaiser Aluminum. However, Apogee Therapeutics, is 1.36 times more volatile than Kaiser Aluminum. It trades about 0.06 of its potential returns per unit of risk. Kaiser Aluminum is currently generating about -0.04 per unit of risk. If you would invest  3,858  in Apogee Therapeutics, Common on September 27, 2024 and sell it today you would earn a total of  858.00  from holding Apogee Therapeutics, Common or generate 22.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  Kaiser Aluminum

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

Kaiser Aluminum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaiser Aluminum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Kaiser Aluminum is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apogee Therapeutics, and Kaiser Aluminum

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

The idea behind Apogee Therapeutics, Common and Kaiser Aluminum 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.

Check out your portfolio center.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.