Correlation Between Applovin Corp and Sekur Private

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

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

Diversification Opportunities for Applovin Corp and Sekur Private

-0.75

Correlation Coefficient

Applovin Corp  Sekur Private

Pay attention - limited upside

The 3 months correlation between Applovin and Sekur is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp and Sekur Private Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekur Private Data and Applovin Corp 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 Applovin Corp are associated (or correlated) with Sekur Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekur Private Data has no effect on the direction of Applovin Corp i.e., Applovin Corp and Sekur Private go up and down completely randomly.

Pair Corralation between Applovin Corp and Sekur Private

Considering the 90-day investment horizon Applovin Corp is expected to generate 0.68 times more return on investment than Sekur Private. However, Applovin Corp is 1.46 times less risky than Sekur Private. It trades about 0.26 of its potential returns per unit of risk. Sekur Private Data is currently generating about -0.01 per unit of risk. If you would invest  11,625  in Applovin Corp on September 16, 2024 and sell it today you would earn a total of  20,822  from holding Applovin Corp or generate 179.11% return on investment over 90 days.

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

Applovin Corp  vs.  Sekur Private Data

Applovin Corp

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Applovin Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Applovin Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Sekur Private Data

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sekur Private Data has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sekur Private is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Applovin Corp and Sekur Private

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

The idea behind Applovin Corp and Sekur Private Data 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.