Correlation Between Agape ATP and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both Agape ATP and Sight Sciences 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 Agape ATP and Sight Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agape ATP and Sight Sciences, you can compare the effects of market volatilities on Agape ATP and Sight Sciences 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 Agape ATP with a short position of Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agape ATP and Sight Sciences.
Diversification Opportunities for Agape ATP and Sight Sciences
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agape and Sight is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agape ATP and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences and Agape ATP 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 Agape ATP are associated (or correlated) with Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Agape ATP i.e., Agape ATP and Sight Sciences go up and down completely randomly.
Pair Corralation between Agape ATP and Sight Sciences
Given the investment horizon of 90 days Agape ATP is expected to generate 0.88 times more return on investment than Sight Sciences. However, Agape ATP is 1.14 times less risky than Sight Sciences. It trades about -0.15 of its potential returns per unit of risk. Sight Sciences is currently generating about -0.24 per unit of risk. If you would invest 190.00 in Agape ATP on August 28, 2024 and sell it today you would lose (31.00) from holding Agape ATP or give up 16.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agape ATP vs. Sight Sciences
Performance |
| Timeline |
| Agape ATP |
| Sight Sciences |
Agape ATP and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agape ATP and Sight Sciences
The main advantage of trading using opposite Agape ATP and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agape ATP position performs unexpectedly, Sight Sciences 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.| Agape ATP vs. Chipotle Mexican Grill | Agape ATP vs. Elmos Semiconductor SE | Agape ATP vs. Everspin Technologies | Agape ATP vs. Biglari Holdings |
| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |