Correlation Between Tandy Leather and Apollomics

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

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

Diversification Opportunities for Tandy Leather and Apollomics

-0.44

Correlation Coefficient

Tandy Leather  Apollomics

Very good diversification

The 3 months correlation between Tandy and Apollomics is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tandy Leather Factory 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 Tandy Leather 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 Tandy Leather Factory 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 Tandy Leather i.e., Tandy Leather and Apollomics go up and down completely randomly.

Pair Corralation between Tandy Leather and Apollomics

Considering the 90-day investment horizon Tandy Leather is expected to generate 2.6 times less return on investment than Apollomics. But when comparing it to its historical volatility, Tandy Leather Factory is 5.1 times less risky than Apollomics. It trades about 0.06 of its potential returns per unit of risk. Apollomics Class A is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,420  in Apollomics Class A on October 8, 2024 and sell it today you would lose (351.00) from holding Apollomics Class A or give up 24.72% of portfolio value over 90 days.

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

Tandy Leather Factory  vs.  Apollomics Class A

Tandy Leather Factory

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tandy Leather Factory are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Tandy Leather may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Apollomics Class A

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apollomics Class A are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady essential indicators, Apollomics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tandy Leather and Apollomics

The main advantage of trading using opposite Tandy Leather and Apollomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tandy Leather 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 Tandy Leather Factory 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.