Correlation Between Apogee Therapeutics, and Aegean Airlines

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

By analyzing existing cross correlation between Apogee Therapeutics, Common and Aegean Airlines SA, you can compare the effects of market volatilities on Apogee Therapeutics, and Aegean Airlines 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 Apogee Therapeutics, with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and Aegean Airlines.

Diversification Opportunities for Apogee Therapeutics, and Aegean Airlines

0.55

Correlation Coefficient

Apogee Therapeutics,  Aegean Airlines

Very weak diversification

The 3 months correlation between Apogee and Aegean is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Apogee Therapeutics, 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 Apogee Therapeutics, Common are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Aegean Airlines go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Aegean Airlines

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 3.08 times more return on investment than Aegean Airlines. However, Apogee Therapeutics, is 3.08 times more volatile than Aegean Airlines SA. It trades about -0.02 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.13 per unit of risk. If you would invest  5,295  in Apogee Therapeutics, Common on September 19, 2024 and sell it today you would lose (574.00) from holding Apogee Therapeutics, Common or give up 10.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  Aegean Airlines SA

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Aegean Airlines SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegean Airlines SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Apogee Therapeutics, and Aegean Airlines

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

The idea behind Apogee Therapeutics, Common and Aegean Airlines SA 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..