Correlation Between FSN and Aptos

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

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

Diversification Opportunities for FSN and Aptos

0.9

Correlation Coefficient

FSN  Aptos

Almost no diversification

The 3 months correlation between FSN and Aptos is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding FSN and Aptos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptos and FSN 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 FSN are associated (or correlated) with Aptos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptos has no effect on the direction of FSN i.e., FSN and Aptos go up and down completely randomly.

Pair Corralation between FSN and Aptos

Assuming the 90 days trading horizon FSN is expected to under-perform the Aptos. But the crypto coin apears to be less risky and, when comparing its historical volatility, FSN is 1.01 times less risky than Aptos. The crypto coin trades about -0.24 of its potential returns per unit of risk. The Aptos is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  873.00  in Aptos on December 26, 2024 and sell it today you would lose (286.00) from holding Aptos or give up 32.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

FSN  vs.  Aptos

FSN

Risk-Adjusted Performance

Very Weak

Over the last 90 days FSN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for FSN shareholders.

Aptos

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aptos 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 Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Aptos shareholders.

Pair Trading with FSN and Aptos

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

The idea behind FSN and Aptos 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.