Correlation Between Apogee Therapeutics, and Alaska Air

Can any of the company-specific risk be diversified away by investing in both Apogee Therapeutics, and Alaska Air 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 Alaska Air 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 Alaska Air Group, you can compare the effects of market volatilities on Apogee Therapeutics, and Alaska Air 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 Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and Alaska Air.

Diversification Opportunities for Apogee Therapeutics, and Alaska Air

-0.58

Correlation Coefficient

Apogee Therapeutics,  Alaska Air

Excellent diversification

The 3 months correlation between Apogee and Alaska is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group 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 Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Alaska Air go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Alaska Air

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Alaska Air. In addition to that, Apogee Therapeutics, is 1.6 times more volatile than Alaska Air Group. It trades about -0.02 of its total potential returns per unit of risk. Alaska Air Group is currently generating about 0.31 per unit of volatility. If you would invest  3,956  in Alaska Air Group on September 19, 2024 and sell it today you would earn a total of  2,364  from holding Alaska Air Group or generate 59.76% return on investment over 90 days.

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

Apogee Therapeutics, Common  vs.  Alaska Air Group

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.

Alaska Air Group

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alaska Air Group are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Alaska Air disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and Alaska Air

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

The idea behind Apogee Therapeutics, Common and Alaska Air Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.