Correlation Between Joint Corp and Apollomics

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

By analyzing existing cross correlation between The Joint Corp and Apollomics Class A, you can compare the effects of market volatilities on Joint Corp and Apollomics 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 Joint Corp with a short position of Apollomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Corp and Apollomics.

Diversification Opportunities for Joint Corp and Apollomics

-0.38

Correlation Coefficient

Joint Corp  Apollomics

Very good diversification

The 3 months correlation between Joint and Apollomics is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Apollomics Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollomics Class A and Joint 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 The Joint Corp are associated (or correlated) with Apollomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollomics Class A has no effect on the direction of Joint Corp i.e., Joint Corp and Apollomics go up and down completely randomly.

Pair Corralation between Joint Corp and Apollomics

Given the investment horizon of 90 days The Joint Corp is expected to generate 0.42 times more return on investment than Apollomics. However, The Joint Corp is 2.36 times less risky than Apollomics. It trades about 0.04 of its potential returns per unit of risk. Apollomics Class A is currently generating about -0.05 per unit of risk. If you would invest  957.00  in The Joint Corp on September 4, 2024 and sell it today you would earn a total of  198.00  from holding The Joint Corp or generate 20.69% return on investment over 90 days.

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

The Joint Corp  vs.  Apollomics Class A

Joint Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in The Joint Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Joint Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Apollomics Class A

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apollomics Class A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal essential indicators, Apollomics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Joint Corp and Apollomics

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

The idea behind The Joint Corp and Apollomics Class A 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.