Correlation Between Klinique Med and AP Public

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

By analyzing existing cross correlation between The Klinique Med and AP Public, you can compare the effects of market volatilities on Klinique Med and AP Public 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 Klinique Med with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klinique Med and AP Public.

Diversification Opportunities for Klinique Med and AP Public

0.74

Correlation Coefficient

Klinique Med  AP Public

Poor diversification

The 3 months correlation between Klinique and AP Public is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Klinique Med and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Klinique Med 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 Klinique Med are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Klinique Med i.e., Klinique Med and AP Public go up and down completely randomly.

Pair Corralation between Klinique Med and AP Public

Assuming the 90 days trading horizon The Klinique Med is expected to under-perform the AP Public. In addition to that, Klinique Med is 1.08 times more volatile than AP Public. It trades about -0.12 of its total potential returns per unit of risk. AP Public is currently generating about -0.11 per unit of volatility. If you would invest  980.00  in AP Public on September 14, 2024 and sell it today you would lose (115.00) from holding AP Public or give up 11.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

The Klinique Med  vs.  AP Public

Klinique Med

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Klinique Med has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

AP Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AP Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Klinique Med and AP Public

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

The idea behind The Klinique Med and AP Public 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.