Correlation Between Compania Cervecerias and Apollomics

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

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

Diversification Opportunities for Compania Cervecerias and Apollomics

-0.72

Correlation Coefficient

Compania Cervecerias  Apollomics

Pay attention - limited upside

The 3 months correlation between Compania and Apollomics is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas 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 Compania Cervecerias 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 Compania Cervecerias Unidas 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 Compania Cervecerias i.e., Compania Cervecerias and Apollomics go up and down completely randomly.

Pair Corralation between Compania Cervecerias and Apollomics

Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to generate 0.19 times more return on investment than Apollomics. However, Compania Cervecerias Unidas is 5.37 times less risky than Apollomics. It trades about 0.0 of its potential returns per unit of risk. Apollomics Class A is currently generating about -0.07 per unit of risk. If you would invest  1,530  in Compania Cervecerias Unidas on December 4, 2024 and sell it today you would lose (133.00) from holding Compania Cervecerias Unidas or give up 8.69% of portfolio value over 90 days.

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

Compania Cervecerias Unidas  vs.  Apollomics Class A

Compania Cervecerias

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compania Cervecerias Unidas are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Compania Cervecerias unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apollomics Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollomics Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Compania Cervecerias and Apollomics

The main advantage of trading using opposite Compania Cervecerias and Apollomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias 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 Compania Cervecerias Unidas 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..