Correlation Between Apexigen and SoundHound
Can any of the company-specific risk be diversified away by investing in both Apexigen and SoundHound 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 Apexigen and SoundHound into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apexigen and SoundHound AI, you can compare the effects of market volatilities on Apexigen and SoundHound 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 Apexigen with a short position of SoundHound. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apexigen and SoundHound.
Diversification Opportunities for Apexigen and SoundHound
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apexigen and SoundHound is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Apexigen and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI and Apexigen 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 Apexigen are associated (or correlated) with SoundHound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoundHound AI has no effect on the direction of Apexigen i.e., Apexigen and SoundHound go up and down completely randomly.
Pair Corralation between Apexigen and SoundHound
If you would invest 207.00 in SoundHound AI on August 29, 2024 and sell it today you would earn a total of 82.00 from holding SoundHound AI or generate 39.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Apexigen vs. SoundHound AI
Performance |
| Timeline |
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SoundHound AI |
Apexigen and SoundHound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apexigen and SoundHound
The main advantage of trading using opposite Apexigen and SoundHound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apexigen position performs unexpectedly, SoundHound 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 SoundHound will offset losses from the drop in SoundHound's long position.The idea behind Apexigen and SoundHound AI 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.| SoundHound vs. Dave Warrants | SoundHound vs. Swvl Holdings Corp | SoundHound vs. Guardforce AI Co | SoundHound vs. Thayer Ventures Acquisition |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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