Correlation Between APT Systems and Touchpoint Group

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

By analyzing existing cross correlation between APT Systems and Touchpoint Group Holdings, you can compare the effects of market volatilities on APT Systems and Touchpoint Group 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 APT Systems with a short position of Touchpoint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Systems and Touchpoint Group.

Diversification Opportunities for APT Systems and Touchpoint Group

-0.01

Correlation Coefficient

APT Systems  Touchpoint Group

Good diversification

The 3 months correlation between APT and Touchpoint is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding APT Systems and Touchpoint Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchpoint Group Holdings and APT Systems 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 APT Systems are associated (or correlated) with Touchpoint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchpoint Group Holdings has no effect on the direction of APT Systems i.e., APT Systems and Touchpoint Group go up and down completely randomly.

Pair Corralation between APT Systems and Touchpoint Group

If you would invest  0.05  in APT Systems on September 24, 2024 and sell it today you would earn a total of  0.00  from holding APT Systems or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

APT Systems  vs.  Touchpoint Group Holdings

APT Systems

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in APT Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, APT Systems showed solid returns over the last few months and may actually be approaching a breakup point.

Touchpoint Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Touchpoint Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Touchpoint Group is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with APT Systems and Touchpoint Group

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

The idea behind APT Systems and Touchpoint Group Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.