Correlation Between FIXX Old and Apellis Pharmaceuticals

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

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

Diversification Opportunities for FIXX Old and Apellis Pharmaceuticals

-0.17

Correlation Coefficient

FIXX Old  Apellis Pharmaceuticals

Good diversification

The 3 months correlation between FIXX and Apellis is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FIXX Old and Apellis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apellis Pharmaceuticals and FIXX Old 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 FIXX Old are associated (or correlated) with Apellis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apellis Pharmaceuticals has no effect on the direction of FIXX Old i.e., FIXX Old and Apellis Pharmaceuticals go up and down completely randomly.

Pair Corralation between FIXX Old and Apellis Pharmaceuticals

Given the investment horizon of 90 days FIXX Old is expected to generate 1.13 times more return on investment than Apellis Pharmaceuticals. However, FIXX Old is 1.13 times more volatile than Apellis Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Apellis Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest  119.00  in FIXX Old on October 21, 2024 and sell it today you would lose (10.00) from holding FIXX Old or give up 8.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	27.94%
Values	Daily Returns

FIXX Old  vs.  Apellis Pharmaceuticals

FIXX Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIXX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, FIXX Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Apellis Pharmaceuticals

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apellis Pharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Apellis Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FIXX Old and Apellis Pharmaceuticals

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

The idea behind FIXX Old and Apellis Pharmaceuticals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.