Correlation Between AppTech Payments and Fobi AI
Can any of the company-specific risk be diversified away by investing in both AppTech Payments and Fobi AI 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 Fobi AI 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 Fobi AI, you can compare the effects of market volatilities on AppTech Payments and Fobi AI 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 Fobi AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppTech Payments and Fobi AI.
Diversification Opportunities for AppTech Payments and Fobi AI
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AppTech and Fobi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Fobi AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fobi AI 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 Fobi AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fobi AI has no effect on the direction of AppTech Payments i.e., AppTech Payments and Fobi AI go up and down completely randomly.
Pair Corralation between AppTech Payments and Fobi AI
Assuming the 90 days horizon AppTech Payments is expected to generate 1.42 times less return on investment than Fobi AI. In addition to that, AppTech Payments is 1.0 times more volatile than Fobi AI. It trades about 0.14 of its total potential returns per unit of risk. Fobi AI is currently generating about 0.2 per unit of volatility. If you would invest 0.80 in Fobi AI on September 26, 2024 and sell it today you would earn a total of 0.40 from holding Fobi AI or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 76.19% |
Values | Daily Returns |
AppTech Payments Corp vs. Fobi AI
Performance |
Timeline |
AppTech Payments Corp |
Fobi AI |
AppTech Payments and Fobi AI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AppTech Payments and Fobi AI
The main advantage of trading using opposite AppTech Payments and Fobi AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppTech Payments position performs unexpectedly, Fobi AI 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 Fobi AI will offset losses from the drop in Fobi AI's long position.AppTech Payments vs. NetScout Systems | AppTech Payments vs. Consensus Cloud Solutions | AppTech Payments vs. CSG Systems International | AppTech Payments vs. Remitly Global |
Fobi AI vs. Voxtur Analytics Corp | Fobi AI vs. Fobi AI | Fobi AI vs. ThreeD Capital | Fobi AI vs. VSBLTY Groupe Technologies |
Check out your portfolio center.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
CEOs Directory Screen CEOs from public companies around the world | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |