Correlation Between Bruush Oral and AppTech Payments

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

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

Diversification Opportunities for Bruush Oral and AppTech Payments

0.0

Correlation Coefficient

Bruush Oral  AppTech Payments

Pay attention - limited upside

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

Pair Corralation between Bruush Oral and AppTech Payments

If you would invest  11.00  in AppTech Payments Corp on December 28, 2024 and sell it today you would earn a total of  5.88  from holding AppTech Payments Corp or generate 53.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bruush Oral Care  vs.  AppTech Payments Corp

Bruush Oral Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bruush Oral Care has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Bruush Oral is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

AppTech Payments Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AppTech Payments Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, AppTech Payments showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bruush Oral and AppTech Payments

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

The idea behind Bruush Oral Care and AppTech Payments Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.