Correlation Between Apollomics and Inter Parfums

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Can any of the company-specific risk be diversified away by investing in both Apollomics and Inter Parfums 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 Apollomics and Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollomics Class A and Inter Parfums, you can compare the effects of market volatilities on Apollomics and Inter Parfums 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 Apollomics with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollomics and Inter Parfums.

Diversification Opportunities for Apollomics and Inter Parfums

ApollomicsInterDiversified AwayApollomicsInterDiversified Away100%
-0.41
  Correlation Coefficient

Very good diversification

The 3 months correlation between Apollomics and Inter is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apollomics Class A and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and Apollomics 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 Apollomics Class A are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Apollomics i.e., Apollomics and Inter Parfums go up and down completely randomly.

Pair Corralation between Apollomics and Inter Parfums

Given the investment horizon of 90 days Apollomics Class A is expected to under-perform the Inter Parfums. In addition to that, Apollomics is 3.75 times more volatile than Inter Parfums. It trades about -0.1 of its total potential returns per unit of risk. Inter Parfums is currently generating about 0.0 per unit of volatility. If you would invest  13,651  in Inter Parfums on December 3, 2024 and sell it today you would lose (66.00) from holding Inter Parfums or give up 0.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apollomics Class A  vs.  Inter Parfums

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0204060
JavaScript chart by amCharts 3.21.15APLM IPAR
       Timeline  
Apollomics Class A 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Apollomics Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar789101112
Inter Parfums 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Inter Parfums has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Inter Parfums is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar130135140145

Apollomics and Inter Parfums Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.24-8.42-5.6-2.78-0.04242.424.977.5110.0612.61 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15APLM IPAR
       Returns  

Pair Trading with Apollomics and Inter Parfums

The main advantage of trading using opposite Apollomics and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollomics position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.
The idea behind Apollomics Class A and Inter Parfums 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.
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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