Correlation Between Apollomics and Siriuspoint

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

Diversification Opportunities for Apollomics and Siriuspoint

-0.61

Correlation Coefficient

Apollomics  Siriuspoint

Excellent diversification

The 3 months correlation between Apollomics and Siriuspoint is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Apollomics Class A and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Apollomics i.e., Apollomics and Siriuspoint go up and down completely randomly.

Pair Corralation between Apollomics and Siriuspoint

Given the investment horizon of 90 days Apollomics Class A is expected to generate 7.3 times more return on investment than Siriuspoint. However, Apollomics is 7.3 times more volatile than Siriuspoint. It trades about 0.1 of its potential returns per unit of risk. Siriuspoint is currently generating about -0.27 per unit of risk. If you would invest  890.00  in Apollomics Class A on September 29, 2024 and sell it today you would earn a total of  98.00  from holding Apollomics Class A or generate 11.01% return on investment over 90 days.

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

Apollomics Class A  vs.  Siriuspoint

Apollomics Class A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apollomics Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Apollomics displayed solid returns over the last few months and may actually be approaching a breakup point.

Siriuspoint

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Apollomics and Siriuspoint

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

The idea behind Apollomics Class A and Siriuspoint 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.