Correlation Between Apogee Therapeutics, and Western Copper

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

Diversification Opportunities for Apogee Therapeutics, and Western Copper

0.2

Correlation Coefficient

Apogee Therapeutics,  Western Copper

Modest diversification

The 3 months correlation between Apogee and Western is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Western Copper go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Western Copper

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Western Copper. In addition to that, Apogee Therapeutics, is 1.54 times more volatile than Western Copper and. It trades about -0.04 of its total potential returns per unit of risk. Western Copper and is currently generating about 0.06 per unit of volatility. If you would invest  104.00  in Western Copper and on December 20, 2024 and sell it today you would earn a total of  9.00  from holding Western Copper and or generate 8.65% 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.  Western Copper and

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 fragile 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.

Western Copper

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Western Copper and are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Western Copper may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Apogee Therapeutics, and Western Copper

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

The idea behind Apogee Therapeutics, Common and Western Copper and 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.