Correlation Between Appreciate Holdings and New Concept

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

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

Diversification Opportunities for Appreciate Holdings and New Concept

0.0

Correlation Coefficient

Appreciate Holdings  New Concept

Pay attention - limited upside

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

Pair Corralation between Appreciate Holdings and New Concept

If you would invest  117.00  in New Concept Energy on October 26, 2024 and sell it today you would earn a total of  4.00  from holding New Concept Energy or generate 3.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Appreciate Holdings  vs.  New Concept Energy

Appreciate Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Appreciate Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Appreciate Holdings is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

New Concept Energy

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in New Concept Energy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, New Concept is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Appreciate Holdings and New Concept

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

The idea behind Appreciate Holdings and New Concept Energy 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..