Correlation Between Apogee Therapeutics, and PETRONAS Gas

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

Diversification Opportunities for Apogee Therapeutics, and PETRONAS Gas

-0.47

Correlation Coefficient

Apogee Therapeutics,  PETRONAS Gas

Very good diversification

The 3 months correlation between Apogee and PETRONAS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and PETRONAS Gas Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETRONAS Gas Berhad 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 PETRONAS Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETRONAS Gas Berhad has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and PETRONAS Gas go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and PETRONAS Gas

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the PETRONAS Gas. In addition to that, Apogee Therapeutics, is 1.84 times more volatile than PETRONAS Gas Berhad. It trades about -0.04 of its total potential returns per unit of risk. PETRONAS Gas Berhad is currently generating about -0.03 per unit of volatility. If you would invest  392.00  in PETRONAS Gas Berhad on December 20, 2024 and sell it today you would lose (23.00) from holding PETRONAS Gas Berhad or give up 5.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  PETRONAS Gas Berhad

Apogee Therapeutics,

Risk-Adjusted Performance

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.

PETRONAS Gas Berhad

Risk-Adjusted Performance

Very Weak

Over the last 90 days PETRONAS Gas Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, PETRONAS Gas is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Apogee Therapeutics, and PETRONAS Gas

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

The idea behind Apogee Therapeutics, Common and PETRONAS Gas Berhad 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .