Correlation Between Apogee Therapeutics, and Sea

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

Diversification Opportunities for Apogee Therapeutics, and Sea

-0.85

Correlation Coefficient

Apogee Therapeutics,  Sea

Pay attention - limited upside

The 3 months correlation between Apogee and Sea is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Sea go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Sea

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 1.37 times more return on investment than Sea. However, Apogee Therapeutics, is 1.37 times more volatile than Sea. It trades about 0.08 of its potential returns per unit of risk. Sea is currently generating about 0.05 per unit of risk. If you would invest  1,700  in Apogee Therapeutics, Common on October 4, 2024 and sell it today you would earn a total of  2,830  from holding Apogee Therapeutics, Common or generate 166.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	75.15%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  Sea

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

Sea

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sea are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Sea may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Apogee Therapeutics, and Sea

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

The idea behind Apogee Therapeutics, Common and Sea 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 Commodity Directory module to find actively traded commodities issued by global exchanges.