Correlation Between Apollomics and Pyxis Oncology

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

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

Diversification Opportunities for Apollomics and Pyxis Oncology

0.66

Correlation Coefficient

Apollomics  Pyxis Oncology

Poor diversification

The 3 months correlation between Apollomics and Pyxis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Apollomics Class A and Pyxis Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Oncology and Apollomics 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 Apollomics Class A are associated (or correlated) with Pyxis Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Oncology has no effect on the direction of Apollomics i.e., Apollomics and Pyxis Oncology go up and down completely randomly.

Pair Corralation between Apollomics and Pyxis Oncology

Given the investment horizon of 90 days Apollomics Class A is expected to generate 2.1 times more return on investment than Pyxis Oncology. However, Apollomics is 2.1 times more volatile than Pyxis Oncology. It trades about 0.0 of its potential returns per unit of risk. Pyxis Oncology is currently generating about -0.15 per unit of risk. If you would invest  1,360  in Apollomics Class A on September 13, 2024 and sell it today you would lose (586.00) from holding Apollomics Class A or give up 43.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Apollomics Class A  vs.  Pyxis Oncology

Apollomics Class A

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pyxis Oncology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pyxis Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Apollomics and Pyxis Oncology

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

The idea behind Apollomics Class A and Pyxis Oncology 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.