Correlation Between Apogee Therapeutics, and Sensient Technologies
Can any of the company-specific risk be diversified away by investing in both Apogee Therapeutics, and Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies, you can compare the effects of market volatilities on Apogee Therapeutics, and Sensient Technologies 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 Sensient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and Sensient Technologies.
Diversification Opportunities for Apogee Therapeutics, and Sensient Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apogee and Sensient is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Sensient Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensient Technologies 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 Sensient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensient Technologies has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and Sensient Technologies go up and down completely randomly.
Pair Corralation between Apogee Therapeutics, and Sensient Technologies
Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Sensient Technologies. In addition to that, Apogee Therapeutics, is 2.83 times more volatile than Sensient Technologies. It trades about -0.01 of its total potential returns per unit of risk. Sensient Technologies is currently generating about 0.01 per unit of volatility. If you would invest 7,514 in Sensient Technologies on November 2, 2024 and sell it today you would earn a total of 41.00 from holding Sensient Technologies or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Therapeutics, Common vs. Sensient Technologies
Performance |
| Timeline |
| Apogee Therapeutics, |
| Sensient Technologies |
Apogee Therapeutics, and Sensient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Therapeutics, and Sensient Technologies
The main advantage of trading using opposite Apogee Therapeutics, and Sensient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Therapeutics, position performs unexpectedly, Sensient Technologies 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 Sensient Technologies will offset losses from the drop in Sensient Technologies' long position.| Apogee Therapeutics, vs. Waste Management | Apogee Therapeutics, vs. Fidus Investment Corp | Apogee Therapeutics, vs. Ameriprise Financial | Apogee Therapeutics, vs. SEI Investments |
| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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