Correlation Between Pagaya Technologies and Apptech Corp
Can any of the company-specific risk be diversified away by investing in both Pagaya Technologies and Apptech Corp 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 Pagaya Technologies and Apptech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pagaya Technologies and Apptech Corp, you can compare the effects of market volatilities on Pagaya Technologies and Apptech Corp 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 Pagaya Technologies with a short position of Apptech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and Apptech Corp.
Diversification Opportunities for Pagaya Technologies and Apptech Corp
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pagaya and Apptech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and Pagaya Technologies 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 Pagaya Technologies are associated (or correlated) with Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Pagaya Technologies i.e., Pagaya Technologies and Apptech Corp go up and down completely randomly.
Pair Corralation between Pagaya Technologies and Apptech Corp
Considering the 90-day investment horizon Pagaya Technologies is expected to generate 0.75 times more return on investment than Apptech Corp. However, Pagaya Technologies is 1.33 times less risky than Apptech Corp. It trades about 0.04 of its potential returns per unit of risk. Apptech Corp is currently generating about 0.02 per unit of risk. If you would invest 880.00 in Pagaya Technologies on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Pagaya Technologies or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pagaya Technologies vs. Apptech Corp
Performance |
| Timeline |
| Pagaya Technologies |
| Apptech Corp |
Pagaya Technologies and Apptech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pagaya Technologies and Apptech Corp
The main advantage of trading using opposite Pagaya Technologies and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies position performs unexpectedly, Apptech Corp 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 Corp will offset losses from the drop in Apptech Corp's long position.| Pagaya Technologies vs. GigaCloud Technology Class | Pagaya Technologies vs. Arqit Quantum | Pagaya Technologies vs. Cemtrex | Pagaya Technologies vs. Paysafe |
| Apptech Corp vs. GigaCloud Technology Class | Apptech Corp vs. Arqit Quantum | Apptech Corp vs. Telos Corp | Apptech Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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