Correlation Between Apellis Pharmaceuticals and Atreca

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

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

Diversification Opportunities for Apellis Pharmaceuticals and Atreca

-0.19

Correlation Coefficient

Apellis Pharmaceuticals  Atreca

Good diversification

The 3 months correlation between Apellis and Atreca is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Apellis Pharmaceuticals and Atreca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atreca Inc and Apellis Pharmaceuticals 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 Apellis Pharmaceuticals are associated (or correlated) with Atreca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atreca Inc has no effect on the direction of Apellis Pharmaceuticals i.e., Apellis Pharmaceuticals and Atreca go up and down completely randomly.

Pair Corralation between Apellis Pharmaceuticals and Atreca

If you would invest  3,345  in Apellis Pharmaceuticals on October 6, 2024 and sell it today you would earn a total of  1.00  from holding Apellis Pharmaceuticals or generate 0.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Apellis Pharmaceuticals  vs.  Atreca Inc

Apellis Pharmaceuticals

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apellis Pharmaceuticals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Apellis Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Atreca is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Apellis Pharmaceuticals and Atreca

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

The idea behind Apellis Pharmaceuticals and Atreca Inc 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.