Correlation Between AppTech Payments and Alfi
Can any of the company-specific risk be diversified away by investing in both AppTech Payments and Alfi 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 AppTech Payments and Alfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppTech Payments Corp and Alfi Inc, you can compare the effects of market volatilities on AppTech Payments and Alfi 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 AppTech Payments with a short position of Alfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppTech Payments and Alfi.
Diversification Opportunities for AppTech Payments and Alfi
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AppTech and Alfi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Alfi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfi Inc and AppTech 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 AppTech Payments Corp are associated (or correlated) with Alfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfi Inc has no effect on the direction of AppTech Payments i.e., AppTech Payments and Alfi go up and down completely randomly.
Pair Corralation between AppTech Payments and Alfi
If you would invest 22.00 in AppTech Payments Corp on August 26, 2024 and sell it today you would lose (2.00) from holding AppTech Payments Corp or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 6.25% |
| Values | Daily Returns |
AppTech Payments Corp vs. Alfi Inc
Performance |
| Timeline |
| AppTech Payments Corp |
| Alfi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AppTech Payments and Alfi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppTech Payments and Alfi
The main advantage of trading using opposite AppTech Payments and Alfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppTech Payments position performs unexpectedly, Alfi 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 Alfi will offset losses from the drop in Alfi's long position.| AppTech Payments vs. GigaCloud Technology Class | AppTech Payments vs. Arqit Quantum | AppTech Payments vs. Telos Corp | AppTech Payments vs. Cemtrex |
| Alfi vs. Arax Holdings Corp | Alfi vs. AppTech Payments Corp | Alfi vs. Arbe Robotics Ltd | Alfi vs. Argentum 47 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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