Correlation Between Encore Capital and Apogee Therapeutics,

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

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

Diversification Opportunities for Encore Capital and Apogee Therapeutics,

-0.34

Correlation Coefficient

Encore Capital  Apogee Therapeutics,

Very good diversification

The 3 months correlation between Encore and Apogee is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, and Encore Capital 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 Encore Capital Group are associated (or correlated) with Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Encore Capital i.e., Encore Capital and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between Encore Capital and Apogee Therapeutics,

Given the investment horizon of 90 days Encore Capital is expected to generate 14.96 times less return on investment than Apogee Therapeutics,. But when comparing it to its historical volatility, Encore Capital Group is 2.14 times less risky than Apogee Therapeutics,. It trades about 0.01 of its potential returns per unit of risk. Apogee Therapeutics, Common is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,286  in Apogee Therapeutics, Common on September 13, 2024 and sell it today you would earn a total of  2,552  from holding Apogee Therapeutics, Common or generate 111.64% return on investment over 90 days.

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

Encore Capital Group  vs.  Apogee Therapeutics, Common

Encore Capital Group

Risk-Adjusted Performance

2 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Encore Capital Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Encore Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

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 rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Encore Capital and Apogee Therapeutics,

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

The idea behind Encore Capital Group and Apogee Therapeutics, Common 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.