Correlation Between Apollomics Warrant and Cyclacel Pharmaceuticals

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

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

Diversification Opportunities for Apollomics Warrant and Cyclacel Pharmaceuticals

0.0

Correlation Coefficient

Apollomics Warrant  Cyclacel Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Apollomics and Cyclacel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apollomics Warrant and Cyclacel Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyclacel Pharmaceuticals and Apollomics Warrant 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 Warrant are associated (or correlated) with Cyclacel Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyclacel Pharmaceuticals has no effect on the direction of Apollomics Warrant i.e., Apollomics Warrant and Cyclacel Pharmaceuticals go up and down completely randomly.

Pair Corralation between Apollomics Warrant and Cyclacel Pharmaceuticals

Assuming the 90 days horizon Apollomics Warrant is expected to under-perform the Cyclacel Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Apollomics Warrant is 1.21 times less risky than Cyclacel Pharmaceuticals. The stock trades about -0.13 of its potential returns per unit of risk. The Cyclacel Pharmaceuticals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  729.00  in Cyclacel Pharmaceuticals on December 24, 2024 and sell it today you would lose (129.00) from holding Cyclacel Pharmaceuticals or give up 17.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.44%
Values	Daily Returns

Apollomics Warrant  vs.  Cyclacel Pharmaceuticals

Apollomics Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollomics Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Cyclacel Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cyclacel Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental indicators, Cyclacel Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Apollomics Warrant and Cyclacel Pharmaceuticals

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

The idea behind Apollomics Warrant and Cyclacel Pharmaceuticals 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.