Correlation Between Advanced Proteome and ChitogenX

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

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

Diversification Opportunities for Advanced Proteome and ChitogenX

0.0

Correlation Coefficient

Advanced Proteome  ChitogenX

Pay attention - limited upside

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

Pair Corralation between Advanced Proteome and ChitogenX

If you would invest  0.51  in ChitogenX on December 1, 2024 and sell it today you would earn a total of  0.20  from holding ChitogenX or generate 39.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Advanced Proteome Therapeutics  vs.  ChitogenX

Advanced Proteome

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advanced Proteome Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advanced Proteome is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

ChitogenX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ChitogenX are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ChitogenX reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Proteome and ChitogenX

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

The idea behind Advanced Proteome Therapeutics and ChitogenX 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.

Check out your portfolio center.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.