Correlation Between Splitit Payments and Appgate

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

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

Diversification Opportunities for Splitit Payments and Appgate

0.78

Correlation Coefficient

Splitit Payments  Appgate

Poor diversification

The 3 months correlation between Splitit and Appgate is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate and Splitit Payments 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 Splitit Payments are associated (or correlated) with Appgate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appgate has no effect on the direction of Splitit Payments i.e., Splitit Payments and Appgate go up and down completely randomly.

Pair Corralation between Splitit Payments and Appgate

If you would invest  13.00  in Appgate on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Appgate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

Splitit Payments  vs.  Appgate

Splitit Payments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Appgate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Appgate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Appgate is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Splitit Payments and Appgate

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

The idea behind Splitit Payments and Appgate 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.