Correlation Between Apogee Therapeutics, and SunCar Technology

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

Diversification Opportunities for Apogee Therapeutics, and SunCar Technology

0.65

Correlation Coefficient

Apogee Therapeutics,  SunCar Technology

Poor diversification

The 3 months correlation between Apogee and SunCar is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology 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 SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and SunCar Technology go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and SunCar Technology

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Therapeutics, Common is 2.31 times less risky than SunCar Technology. The stock trades about -0.03 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  33.00  in SunCar Technology Group on December 28, 2024 and sell it today you would lose (8.59) from holding SunCar Technology Group or give up 26.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	83.33%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  SunCar Technology Group

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 conflicting 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.

SunCar Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days SunCar Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SunCar Technology is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Apogee Therapeutics, and SunCar Technology

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

The idea behind Apogee Therapeutics, Common and SunCar Technology Group 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.