Correlation Between Cemtrex and AppTech Payments
Can any of the company-specific risk be diversified away by investing in both Cemtrex and AppTech Payments 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 Cemtrex and AppTech Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtrex and AppTech Payments Corp, you can compare the effects of market volatilities on Cemtrex and AppTech Payments 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 Cemtrex with a short position of AppTech Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtrex and AppTech Payments.
Diversification Opportunities for Cemtrex and AppTech Payments
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cemtrex and AppTech is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cemtrex and AppTech Payments Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppTech Payments Corp and Cemtrex 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 Cemtrex are associated (or correlated) with AppTech Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppTech Payments Corp has no effect on the direction of Cemtrex i.e., Cemtrex and AppTech Payments go up and down completely randomly.
Pair Corralation between Cemtrex and AppTech Payments
Given the investment horizon of 90 days Cemtrex is expected to generate 7.61 times less return on investment than AppTech Payments. But when comparing it to its historical volatility, Cemtrex is 1.52 times less risky than AppTech Payments. It trades about 0.02 of its potential returns per unit of risk. AppTech Payments Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18.00 in AppTech Payments Corp on August 26, 2024 and sell it today you would earn a total of 2.00 from holding AppTech Payments Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.92% |
| Values | Daily Returns |
Cemtrex vs. AppTech Payments Corp
Performance |
| Timeline |
| Cemtrex |
| AppTech Payments Corp |
Cemtrex and AppTech Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemtrex and AppTech Payments
The main advantage of trading using opposite Cemtrex and AppTech Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtrex position performs unexpectedly, AppTech Payments 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 AppTech Payments will offset losses from the drop in AppTech Payments' long position.| Cemtrex vs. Plexus Corp | Cemtrex vs. Benchmark Electronics | Cemtrex vs. Jabil Circuit | Cemtrex vs. Sanmina |
| AppTech Payments vs. GigaCloud Technology Class | AppTech Payments vs. Arqit Quantum | AppTech Payments vs. Telos Corp | AppTech Payments vs. Cemtrex |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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