Correlation Between APA and Khiron Life

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Can any of the company-specific risk be diversified away by investing in both APA and Khiron Life 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 APA and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APA Group and Khiron Life Sciences, you can compare the effects of market volatilities on APA and Khiron Life 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 APA with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of APA and Khiron Life.

Diversification Opportunities for APA and Khiron Life

APAKhironDiversified AwayAPAKhironDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between APA and Khiron Life

If you would invest  399.00  in APA Group on October 27, 2024 and sell it today you would earn a total of  8.00  from holding APA Group or generate 2.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.36%
ValuesDaily Returns

APA Group  vs.  Khiron Life Sciences

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -12-10-8-6-4-20
JavaScript chart by amCharts 3.21.15PJZ 4KH
       Timeline  
APA Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in APA Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, APA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3.83.944.14.24.3
Khiron Life Sciences 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Khiron Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Khiron Life is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0220.0225

APA and Khiron Life Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.09-2.32-1.54-0.76-0.01250.721.472.222.973.72 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15PJZ 4KH
       Returns  

Pair Trading with APA and Khiron Life

The main advantage of trading using opposite APA and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APA position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.
The idea behind APA Group and Khiron Life Sciences 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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