Correlation Between Cellebrite and AppTech Payments

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

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

Diversification Opportunities for Cellebrite and AppTech Payments

-0.31

Correlation Coefficient

Cellebrite  AppTech Payments

Very good diversification

The 3 months correlation between Cellebrite and AppTech is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cellebrite DI 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 Cellebrite 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 Cellebrite DI 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 Cellebrite i.e., Cellebrite and AppTech Payments go up and down completely randomly.

Pair Corralation between Cellebrite and AppTech Payments

Given the investment horizon of 90 days Cellebrite is expected to generate 15.23 times less return on investment than AppTech Payments. But when comparing it to its historical volatility, Cellebrite DI is 27.88 times less risky than AppTech Payments. It trades about 0.14 of its potential returns per unit of risk. AppTech Payments Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  17.00  in AppTech Payments Corp on September 16, 2024 and sell it today you would lose (1.00) from holding AppTech Payments Corp or give up 5.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.69%
Values	Daily Returns

Cellebrite DI  vs.  AppTech Payments Corp

Cellebrite DI

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cellebrite DI are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Cellebrite unveiled solid returns over the last few months and may actually be approaching a breakup point.

AppTech Payments Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AppTech Payments Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Cellebrite and AppTech Payments

The main advantage of trading using opposite Cellebrite and AppTech Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellebrite 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 Cellebrite DI 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.

Check out your portfolio center.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.