Correlation Between Apptech Corp and Alger Mid

Can any of the company-specific risk be diversified away by investing in both Apptech Corp and Alger Mid 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 Apptech Corp and Alger Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apptech Corp and Alger Mid Cap, you can compare the effects of market volatilities on Apptech Corp and Alger Mid 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 Apptech Corp with a short position of Alger Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apptech Corp and Alger Mid.

Diversification Opportunities for Apptech Corp and Alger Mid

-0.7

Correlation Coefficient

Apptech Corp  Alger Mid

Excellent diversification

The 3 months correlation between Apptech and Alger is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Apptech Corp and Alger Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Mid Cap and Apptech Corp 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 Apptech Corp are associated (or correlated) with Alger Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Mid Cap has no effect on the direction of Apptech Corp i.e., Apptech Corp and Alger Mid go up and down completely randomly.

Pair Corralation between Apptech Corp and Alger Mid

Given the investment horizon of 90 days Apptech Corp is expected to generate 25.34 times more return on investment than Alger Mid. However, Apptech Corp is 25.34 times more volatile than Alger Mid Cap. It trades about 0.11 of its potential returns per unit of risk. Alger Mid Cap is currently generating about 0.41 per unit of risk. If you would invest  32.00  in Apptech Corp on April 24, 2025 and sell it today you would lose (2.00) from holding Apptech Corp or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	49.18%
Values	Daily Returns

Apptech Corp  vs.  Alger Mid Cap

Apptech Corp

Risk-Adjusted Performance

OK

Over the last 90 days Apptech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal fundamental indicators, Apptech Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Alger Mid Cap

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Mid Cap are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alger Mid showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apptech Corp and Alger Mid

The main advantage of trading using opposite Apptech Corp and Alger Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apptech Corp position performs unexpectedly, Alger Mid 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 Alger Mid will offset losses from the drop in Alger Mid's long position.

The idea behind Apptech Corp and Alger Mid Cap 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.