Correlation Between Apogee Therapeutics, and Tokyo Electron

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

Diversification Opportunities for Apogee Therapeutics, and Tokyo Electron

-0.4

Correlation Coefficient

Apogee Therapeutics,  Tokyo Electron

Very good diversification

The 3 months correlation between Apogee and Tokyo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Tokyo Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyo Electron 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 Tokyo Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyo Electron has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Tokyo Electron go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Tokyo Electron

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Tokyo Electron. In addition to that, Apogee Therapeutics, is 1.42 times more volatile than Tokyo Electron. It trades about -0.14 of its total potential returns per unit of risk. Tokyo Electron is currently generating about 0.24 per unit of volatility. If you would invest  14,720  in Tokyo Electron on October 27, 2024 and sell it today you would earn a total of  2,408  from holding Tokyo Electron or generate 16.36% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Tokyo Electron

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.

Tokyo Electron

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tokyo Electron are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, Tokyo Electron reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and Tokyo Electron

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

The idea behind Apogee Therapeutics, Common and Tokyo Electron 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.