Correlation Between SinglePoint and Appswarm

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

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

Diversification Opportunities for SinglePoint and Appswarm

0.0

Correlation Coefficient

SinglePoint  Appswarm

Pay attention - limited upside

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

Pair Corralation between SinglePoint and Appswarm

If you would invest  0.01  in Appswarm on December 30, 2024 and sell it today you would earn a total of  0.01  from holding Appswarm or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SinglePoint  vs.  Appswarm

SinglePoint

Risk-Adjusted Performance

Very Weak

Over the last 90 days SinglePoint has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SinglePoint is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Appswarm

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Appswarm are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Appswarm displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SinglePoint and Appswarm

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

The idea behind SinglePoint and Appswarm 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.