Correlation Between Bitcoin and Apellis Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Apellis Pharmaceuticals 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 Bitcoin and Apellis Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Apellis Pharmaceuticals, you can compare the effects of market volatilities on Bitcoin and Apellis Pharmaceuticals 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 Bitcoin with a short position of Apellis Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Apellis Pharmaceuticals.
Diversification Opportunities for Bitcoin and Apellis Pharmaceuticals
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and Apellis is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Apellis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apellis Pharmaceuticals and Bitcoin 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 Bitcoin are associated (or correlated) with Apellis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apellis Pharmaceuticals has no effect on the direction of Bitcoin i.e., Bitcoin and Apellis Pharmaceuticals go up and down completely randomly.
Pair Corralation between Bitcoin and Apellis Pharmaceuticals
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.47 times more return on investment than Apellis Pharmaceuticals. However, Bitcoin is 2.14 times less risky than Apellis Pharmaceuticals. It trades about 0.15 of its potential returns per unit of risk. Apellis Pharmaceuticals is currently generating about -0.09 per unit of risk. If you would invest 9,776,949 in Bitcoin on October 20, 2024 and sell it today you would earn a total of 658,751 from holding Bitcoin or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bitcoin vs. Apellis Pharmaceuticals
Performance |
| Timeline |
| Bitcoin |
| Apellis Pharmaceuticals |
Bitcoin and Apellis Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Apellis Pharmaceuticals
The main advantage of trading using opposite Bitcoin and Apellis Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Apellis Pharmaceuticals 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 Apellis Pharmaceuticals will offset losses from the drop in Apellis Pharmaceuticals' long position.The idea behind Bitcoin and Apellis Pharmaceuticals 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.| Apellis Pharmaceuticals vs. Akero Therapeutics | Apellis Pharmaceuticals vs. Immunovant | Apellis Pharmaceuticals vs. Madrigal Pharmaceuticals | Apellis Pharmaceuticals vs. Day One Biopharmaceuticals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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