Correlation Between Apogee Therapeutics, and NRG Energy
Can any of the company-specific risk be diversified away by investing in both Apogee Therapeutics, and NRG Energy 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 Apogee Therapeutics, and NRG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Therapeutics, Common and NRG Energy, you can compare the effects of market volatilities on Apogee Therapeutics, and NRG Energy 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 Apogee Therapeutics, with a short position of NRG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and NRG Energy.
Diversification Opportunities for Apogee Therapeutics, and NRG Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apogee and NRG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and NRG Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy and Apogee Therapeutics, 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 Apogee Therapeutics, Common are associated (or correlated) with NRG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and NRG Energy go up and down completely randomly.
Pair Corralation between Apogee Therapeutics, and NRG Energy
Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to generate 2.33 times more return on investment than NRG Energy. However, Apogee Therapeutics, is 2.33 times more volatile than NRG Energy. It trades about 0.08 of its potential returns per unit of risk. NRG Energy is currently generating about 0.16 per unit of risk. If you would invest 1,700 in Apogee Therapeutics, Common on August 31, 2024 and sell it today you would earn a total of 2,815 from holding Apogee Therapeutics, Common or generate 165.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Apogee Therapeutics, Common vs. NRG Energy
Performance |
| Timeline |
| Apogee Therapeutics, |
| NRG Energy |
Apogee Therapeutics, and NRG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Therapeutics, and NRG Energy
The main advantage of trading using opposite Apogee Therapeutics, and NRG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Therapeutics, position performs unexpectedly, NRG Energy 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 NRG Energy will offset losses from the drop in NRG Energy's long position.| Apogee Therapeutics, vs. Cue Biopharma | Apogee Therapeutics, vs. Eliem Therapeutics | Apogee Therapeutics, vs. Inhibrx | Apogee Therapeutics, vs. Molecular Partners AG |
| NRG Energy vs. TransAlta Corp | NRG Energy vs. Kenon Holdings | NRG Energy vs. Pampa Energia SA | NRG Energy vs. AGL Energy |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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