Correlation Between TC BioPharm and AppTech Payments

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

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

Diversification Opportunities for TC BioPharm and AppTech Payments

0.07

Correlation Coefficient

TC BioPharm  AppTech Payments

Significant diversification

The 3 months correlation between TCBPW and AppTech is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding TC BioPharm plc 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 TC BioPharm 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 TC BioPharm plc 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 TC BioPharm i.e., TC BioPharm and AppTech Payments go up and down completely randomly.

Pair Corralation between TC BioPharm and AppTech Payments

Assuming the 90 days horizon TC BioPharm plc is expected to under-perform the AppTech Payments. In addition to that, TC BioPharm is 1.16 times more volatile than AppTech Payments Corp. It trades about -0.02 of its total potential returns per unit of risk. AppTech Payments Corp is currently generating about 0.06 per unit of volatility. If you would invest  20.00  in AppTech Payments Corp on December 26, 2024 and sell it today you would lose (1.50) from holding AppTech Payments Corp or give up 7.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

TC BioPharm plc  vs.  AppTech Payments Corp

TC BioPharm plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days TC BioPharm plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

AppTech Payments Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AppTech Payments Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, AppTech Payments showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TC BioPharm and AppTech Payments

The main advantage of trading using opposite TC BioPharm and AppTech Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC BioPharm 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 TC BioPharm plc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.