Correlation Between Remitly Global and AppTech Payments

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

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

Diversification Opportunities for Remitly Global and AppTech Payments

-0.35

Correlation Coefficient

Remitly Global  AppTech Payments

Very good diversification

The 3 months correlation between Remitly and AppTech is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Remitly Global 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 Remitly Global 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 Remitly Global 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 Remitly Global i.e., Remitly Global and AppTech Payments go up and down completely randomly.

Pair Corralation between Remitly Global and AppTech Payments

Given the investment horizon of 90 days Remitly Global is expected to generate 0.15 times more return on investment than AppTech Payments. However, Remitly Global is 6.59 times less risky than AppTech Payments. It trades about 0.24 of its potential returns per unit of risk. AppTech Payments Corp is currently generating about -0.14 per unit of risk. If you would invest  2,052  in Remitly Global on September 24, 2024 and sell it today you would earn a total of  209.00  from holding Remitly Global or generate 10.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.19%
Values	Daily Returns

Remitly Global  vs.  AppTech Payments Corp

Remitly Global

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Remitly Global are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Remitly Global showed solid returns over the last few months and may actually be approaching a breakup point.

AppTech Payments Corp

Risk-Adjusted Performance

5 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AppTech Payments Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, AppTech Payments showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Remitly Global and AppTech Payments

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

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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 CEOs Directory module to screen CEOs from public companies around the world.