Correlation Between Argentum and Appgate

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

By analyzing existing cross correlation between Argentum 47 and Appgate, you can compare the effects of market volatilities on Argentum and Appgate 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 Argentum with a short position of Appgate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argentum and Appgate.

Diversification Opportunities for Argentum and Appgate

-0.02

Correlation Coefficient

Argentum  Appgate

Good diversification

The 3 months correlation between Argentum and Appgate is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Argentum 47 and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate and Argentum 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 Argentum 47 are associated (or correlated) with Appgate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appgate has no effect on the direction of Argentum i.e., Argentum and Appgate go up and down completely randomly.

Pair Corralation between Argentum and Appgate

If you would invest  13.00  in Appgate on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Appgate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Argentum 47  vs.  Appgate

Argentum 47

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Argentum 47 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Argentum is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Appgate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Appgate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Appgate is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Argentum and Appgate

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

The idea behind Argentum 47 and Appgate 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.