Correlation Between Siriuspoint and Apollomics

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

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

Diversification Opportunities for Siriuspoint and Apollomics

-0.61

Correlation Coefficient

Siriuspoint  Apollomics

Excellent diversification

The 3 months correlation between Siriuspoint and Apollomics is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Apollomics Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollomics Class A and Siriuspoint 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 Siriuspoint are associated (or correlated) with Apollomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollomics Class A has no effect on the direction of Siriuspoint i.e., Siriuspoint and Apollomics go up and down completely randomly.

Pair Corralation between Siriuspoint and Apollomics

Given the investment horizon of 90 days Siriuspoint is expected to generate 0.16 times more return on investment than Apollomics. However, Siriuspoint is 6.33 times less risky than Apollomics. It trades about 0.1 of its potential returns per unit of risk. Apollomics Class A is currently generating about -0.03 per unit of risk. If you would invest  606.00  in Siriuspoint on September 29, 2024 and sell it today you would earn a total of  804.00  from holding Siriuspoint or generate 132.67% return on investment over 90 days.

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

Siriuspoint  vs.  Apollomics Class A

Siriuspoint

Risk-Adjusted Performance

0 of 100

Very Weak

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

Apollomics Class A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apollomics Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Apollomics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siriuspoint and Apollomics

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

The idea behind Siriuspoint and Apollomics Class A 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.