Correlation Between Park Ohio and Apogee Therapeutics,

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

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

Diversification Opportunities for Park Ohio and Apogee Therapeutics,

0.09

Correlation Coefficient

Park Ohio  Apogee Therapeutics,

Significant diversification

The 3 months correlation between Park and Apogee is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Park Ohio Holdings and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, and Park Ohio 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 Park Ohio Holdings are associated (or correlated) with Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Park Ohio i.e., Park Ohio and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between Park Ohio and Apogee Therapeutics,

Given the investment horizon of 90 days Park Ohio is expected to generate 1.65 times less return on investment than Apogee Therapeutics,. But when comparing it to its historical volatility, Park Ohio Holdings is 1.44 times less risky than Apogee Therapeutics,. It trades about 0.05 of its potential returns per unit of risk. Apogee Therapeutics, Common is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  4,012  in Apogee Therapeutics, Common on October 7, 2024 and sell it today you would earn a total of  765.00  from holding Apogee Therapeutics, Common or generate 19.07% return on investment over 90 days.

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

Park Ohio Holdings  vs.  Apogee Therapeutics, Common

Park Ohio Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Park Ohio Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Park Ohio and Apogee Therapeutics,

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

The idea behind Park Ohio Holdings and Apogee Therapeutics, Common 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.