Correlation Between AppTech Payments and Appgate

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

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

Diversification Opportunities for AppTech Payments and Appgate

0.37

Correlation Coefficient

AppTech Payments  Appgate

Weak diversification

The 3 months correlation between AppTech and Appgate is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate and AppTech Payments 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 AppTech Payments Corp are associated (or correlated) with Appgate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appgate has no effect on the direction of AppTech Payments i.e., AppTech Payments and Appgate go up and down completely randomly.

Pair Corralation between AppTech Payments and Appgate

Assuming the 90 days horizon AppTech Payments Corp is expected to generate 9.51 times more return on investment than Appgate. However, AppTech Payments is 9.51 times more volatile than Appgate. It trades about 0.14 of its potential returns per unit of risk. Appgate is currently generating about 0.11 per unit of risk. If you would invest  38.00  in AppTech Payments Corp on September 15, 2024 and sell it today you would lose (22.00) from holding AppTech Payments Corp or give up 57.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	12.9%
Values	Daily Returns

AppTech Payments Corp  vs.  Appgate

AppTech Payments Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AppTech Payments Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Appgate

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with AppTech Payments and Appgate

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

The idea behind AppTech Payments Corp and Appgate 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.