Correlation Between BOS Better and Apollomics

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

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

Diversification Opportunities for BOS Better and Apollomics

-0.7

Correlation Coefficient

BOS Better  Apollomics

Excellent diversification

The 3 months correlation between BOS and Apollomics is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Apollomics Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollomics Class A and BOS Better 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 BOS Better Online are associated (or correlated) with Apollomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollomics Class A has no effect on the direction of BOS Better i.e., BOS Better and Apollomics go up and down completely randomly.

Pair Corralation between BOS Better and Apollomics

Given the investment horizon of 90 days BOS Better Online is expected to under-perform the Apollomics. But the stock apears to be less risky and, when comparing its historical volatility, BOS Better Online is 7.84 times less risky than Apollomics. The stock trades about -0.09 of its potential returns per unit of risk. The Apollomics Class A is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  816.00  in Apollomics Class A on September 27, 2024 and sell it today you would earn a total of  233.00  from holding Apollomics Class A or generate 28.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

BOS Better Online  vs.  Apollomics Class A

BOS Better Online

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BOS Better Online are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, BOS Better may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Apollomics Class A

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apollomics Class A are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, Apollomics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BOS Better and Apollomics

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

The idea behind BOS Better Online and Apollomics Class A 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.