Correlation Between Appgate and Argentum

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

By analyzing existing cross correlation between Appgate and Argentum 47, you can compare the effects of market volatilities on Appgate and Argentum 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 Appgate with a short position of Argentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appgate and Argentum.

Diversification Opportunities for Appgate and Argentum

-0.02

Correlation Coefficient

Appgate  Argentum

Good diversification

The 3 months correlation between Appgate and Argentum is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Appgate and Argentum 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentum 47 and Appgate 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 Appgate are associated (or correlated) with Argentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentum 47 has no effect on the direction of Appgate i.e., Appgate and Argentum go up and down completely randomly.

Pair Corralation between Appgate and Argentum

If you would invest  13.00  in Appgate on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Appgate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Appgate  vs.  Argentum 47

Appgate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Appgate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Appgate is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Argentum 47

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Argentum 47 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Argentum is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Appgate and Argentum

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

The idea behind Appgate and Argentum 47 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.

Check out your portfolio center.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.