Correlation Between Aptos and Catizen

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

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

Diversification Opportunities for Aptos and Catizen

0.95

Correlation Coefficient

Aptos  Catizen

Almost no diversification

The 3 months correlation between Aptos and Catizen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Aptos and Catizen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catizen and Aptos 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 Aptos are associated (or correlated) with Catizen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catizen has no effect on the direction of Aptos i.e., Aptos and Catizen go up and down completely randomly.

Pair Corralation between Aptos and Catizen

Assuming the 90 days trading horizon Aptos is expected to generate 0.78 times more return on investment than Catizen. However, Aptos is 1.28 times less risky than Catizen. It trades about -0.12 of its potential returns per unit of risk. Catizen is currently generating about -0.18 per unit of risk. If you would invest  870.00  in Aptos on December 30, 2024 and sell it today you would lose (352.00) from holding Aptos or give up 40.46% of portfolio value over 90 days.

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

Aptos  vs.  Catizen

Aptos

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aptos has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Aptos shareholders.

Catizen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catizen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Catizen shareholders.

Pair Trading with Aptos and Catizen

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

The idea behind Aptos and Catizen 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.