Correlation Between Apogee Therapeutics, and SNDL

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

Diversification Opportunities for Apogee Therapeutics, and SNDL

0.58

Correlation Coefficient

Apogee Therapeutics,  SNDL

Very weak diversification

The 3 months correlation between Apogee and SNDL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and SNDL go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and SNDL

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 1.12 times more return on investment than SNDL. However, Apogee Therapeutics, is 1.12 times more volatile than SNDL Inc. It trades about 0.08 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.01 per unit of risk. If you would invest  1,700  in Apogee Therapeutics, Common on October 10, 2024 and sell it today you would earn a total of  3,257  from holding Apogee Therapeutics, Common or generate 191.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	75.81%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  SNDL Inc

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 rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

SNDL Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SNDL Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, SNDL is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Apogee Therapeutics, and SNDL

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

The idea behind Apogee Therapeutics, Common and SNDL Inc 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.