Correlation Between Appen and 9F
Can any of the company-specific risk be diversified away by investing in both Appen and 9F 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 Appen and 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appen Limited and 9F Inc, you can compare the effects of market volatilities on Appen and 9F 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 Appen with a short position of 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appen and 9F.
Diversification Opportunities for Appen and 9F
Significant diversification
The 3 months correlation between Appen and 9F is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Appen Limited and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc and Appen 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 Appen Limited are associated (or correlated) with 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of Appen i.e., Appen and 9F go up and down completely randomly.
Pair Corralation between Appen and 9F
Assuming the 90 days horizon Appen Limited is expected to generate 2.51 times more return on investment than 9F. However, Appen is 2.51 times more volatile than 9F Inc. It trades about 0.06 of its potential returns per unit of risk. 9F Inc is currently generating about 0.0 per unit of risk. If you would invest 85.00 in Appen Limited on September 2, 2024 and sell it today you would lose (16.00) from holding Appen Limited or give up 18.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Appen Limited vs. 9F Inc
Performance |
| Timeline |
| Appen Limited |
| 9F Inc |
Appen and 9F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appen and 9F
The main advantage of trading using opposite Appen and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appen position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.| Appen vs. Atos Origin SA | Appen vs. Aurora Innovation | Appen vs. Appen Limited | Appen vs. Direct Communication Solutions |
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 CEOs Directory module to screen CEOs from public companies around the world.
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