Correlation Between Apogee Therapeutics, and ArcelorMittal

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

Diversification Opportunities for Apogee Therapeutics, and ArcelorMittal

0.14

Correlation Coefficient

Apogee Therapeutics,  ArcelorMittal

Average diversification

The 3 months correlation between Apogee and ArcelorMittal is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and ArcelorMittal SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA ADR 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA ADR has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and ArcelorMittal go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and ArcelorMittal

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 2.95 times more return on investment than ArcelorMittal. However, Apogee Therapeutics, is 2.95 times more volatile than ArcelorMittal SA ADR. It trades about 0.09 of its potential returns per unit of risk. ArcelorMittal SA ADR is currently generating about -0.08 per unit of risk. If you would invest  4,396  in Apogee Therapeutics, Common on September 27, 2024 and sell it today you would earn a total of  320.00  from holding Apogee Therapeutics, Common or generate 7.28% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  ArcelorMittal SA ADR

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.

ArcelorMittal SA ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ArcelorMittal SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Apogee Therapeutics, and ArcelorMittal

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

The idea behind Apogee Therapeutics, Common and ArcelorMittal SA ADR 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.