Correlation Between RocketFuel Blockchain and Appgate

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

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

Diversification Opportunities for RocketFuel Blockchain and Appgate

0.0

Correlation Coefficient

RocketFuel Blockchain  Appgate

Pay attention - limited upside

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

Pair Corralation between RocketFuel Blockchain and Appgate

If you would invest (100.00) in Appgate on December 23, 2024 and sell it today you would earn a total of  100.00  from holding Appgate or generate -100.0% return on investment over 90 days.

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

RocketFuel Blockchain  vs.  Appgate

RocketFuel Blockchain

Risk-Adjusted Performance

Very Weak

Over the last 90 days RocketFuel Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, RocketFuel Blockchain is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Appgate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Appgate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Appgate is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with RocketFuel Blockchain and Appgate

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

The idea behind RocketFuel Blockchain and Appgate 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.