Correlation Between Adobe Systems and Appgate
Can any of the company-specific risk be diversified away by investing in both Adobe Systems 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 Adobe Systems and Appgate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adobe Systems Incorporated and Appgate, you can compare the effects of market volatilities on Adobe Systems 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 Adobe Systems with a short position of Appgate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe Systems and Appgate.
Diversification Opportunities for Adobe Systems and Appgate
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adobe and Appgate is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Adobe Systems Incorporated and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate and Adobe 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 Adobe Systems Incorporated 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 Adobe Systems i.e., Adobe Systems and Appgate go up and down completely randomly.
Pair Corralation between Adobe Systems and Appgate
If you would invest 48,104 in Adobe Systems Incorporated on August 29, 2024 and sell it today you would earn a total of 4,426 from holding Adobe Systems Incorporated or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Adobe Systems Incorporated vs. Appgate
Performance |
| Timeline |
| Adobe Systems |
| Appgate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Adobe Systems and Appgate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adobe Systems and Appgate
The main advantage of trading using opposite Adobe Systems and Appgate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adobe Systems 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.| Adobe Systems vs. Crowdstrike Holdings | Adobe Systems vs. Palantir Technologies Class | Adobe Systems vs. Zscaler | Adobe Systems vs. Palo Alto Networks |
| Appgate vs. Tingo Inc | Appgate vs. Palo Alto Networks | Appgate vs. Palantir Technologies Class | Appgate vs. Arax Holdings Corp |
Check out your portfolio center.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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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