Correlation Between Arax Holdings and Appgate
Can any of the company-specific risk be diversified away by investing in both Arax Holdings and Appgate 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 Arax Holdings and Appgate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arax Holdings Corp and Appgate, you can compare the effects of market volatilities on Arax Holdings and Appgate 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 Arax Holdings with a short position of Appgate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arax Holdings and Appgate.
Diversification Opportunities for Arax Holdings and Appgate
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arax and Appgate is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Arax Holdings Corp and Appgate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appgate and Arax Holdings 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 Arax Holdings Corp are associated (or correlated) with Appgate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appgate has no effect on the direction of Arax Holdings i.e., Arax Holdings and Appgate go up and down completely randomly.
Pair Corralation between Arax Holdings and Appgate
If you would invest 13.00 in Appgate on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Appgate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Arax Holdings Corp vs. Appgate
Performance |
| Timeline |
| Arax Holdings Corp |
| Appgate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arax Holdings and Appgate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arax Holdings and Appgate
The main advantage of trading using opposite Arax Holdings and Appgate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arax Holdings position performs unexpectedly, Appgate 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 Appgate will offset losses from the drop in Appgate's long position.| Arax Holdings vs. Absolute Health and | Arax Holdings vs. China Health Management | Arax Holdings vs. Embrace Change Acquisition | Arax Holdings vs. TransAKT |
| Appgate vs. Tingo Inc | Appgate vs. Palo Alto Networks | Appgate vs. Palantir Technologies | Appgate vs. Arax Holdings Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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