Correlation Between Apexigen and 180 Life

Can any of the company-specific risk be diversified away by investing in both Apexigen and 180 Life 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 Apexigen and 180 Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apexigen and 180 Life Sciences, you can compare the effects of market volatilities on Apexigen and 180 Life 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 Apexigen with a short position of 180 Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apexigen and 180 Life.

Diversification Opportunities for Apexigen and 180 Life

-0.16

Correlation Coefficient

Apexigen  180 Life

Good diversification

The 3 months correlation between Apexigen and 180 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Apexigen and 180 Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 180 Life Sciences and Apexigen 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 Apexigen are associated (or correlated) with 180 Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 180 Life Sciences has no effect on the direction of Apexigen i.e., Apexigen and 180 Life go up and down completely randomly.

Pair Corralation between Apexigen and 180 Life

Given the investment horizon of 90 days Apexigen is expected to under-perform the 180 Life. But the stock apears to be less risky and, when comparing its historical volatility, Apexigen is 1.75 times less risky than 180 Life. The stock trades about -0.07 of its potential returns per unit of risk. The 180 Life Sciences is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6,270  in 180 Life Sciences on October 21, 2024 and sell it today you would lose (6,114) from holding 180 Life Sciences or give up 97.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	24.6%
Values	Daily Returns

Apexigen  vs.  180 Life Sciences

Apexigen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apexigen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Apexigen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

180 Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 180 Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Apexigen and 180 Life

The main advantage of trading using opposite Apexigen and 180 Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apexigen position performs unexpectedly, 180 Life 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 180 Life will offset losses from the drop in 180 Life's long position.

The idea behind Apexigen and 180 Life Sciences 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.