Correlation Between Apogee Therapeutics, and Meliá Hotels

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

Diversification Opportunities for Apogee Therapeutics, and Meliá Hotels

0.3

Correlation Coefficient

Apogee Therapeutics,  Meliá Hotels

Weak diversification

The 3 months correlation between Apogee and Meliá is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Meli Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meli Hotels International 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 Meliá Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meli Hotels International has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Meliá Hotels go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Meliá Hotels

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Meliá Hotels. In addition to that, Apogee Therapeutics, is 2.93 times more volatile than Meli Hotels International. It trades about -0.32 of its total potential returns per unit of risk. Meli Hotels International is currently generating about 0.22 per unit of volatility. If you would invest  678.00  in Meli Hotels International on December 4, 2024 and sell it today you would earn a total of  37.00  from holding Meli Hotels International or generate 5.46% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Meli Hotels International

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 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 April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Meli Hotels International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meli Hotels International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Apogee Therapeutics, and Meliá Hotels

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

The idea behind Apogee Therapeutics, Common and Meli Hotels International 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.