Correlation Between Advanced Proteome and Covalon Technologies

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

Diversification Opportunities for Advanced Proteome and Covalon Technologies

0.0

Correlation Coefficient

Advanced Proteome  Covalon Technologies

Pay attention - limited upside

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

Pair Corralation between Advanced Proteome and Covalon Technologies

If you would invest  0.02  in Advanced Proteome Therapeutics on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Advanced Proteome Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Advanced Proteome Therapeutics  vs.  Covalon Technologies

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Covalon Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Covalon Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Advanced Proteome and Covalon Technologies

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

The idea behind Advanced Proteome Therapeutics and Covalon Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.