Correlation Between AppTech Payments and Apptech Corp

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

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

Diversification Opportunities for AppTech Payments and Apptech Corp

0.66

Correlation Coefficient

AppTech Payments  Apptech Corp

Poor diversification

The 3 months correlation between AppTech and Apptech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and AppTech Payments 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 Payments Corp 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 AppTech Payments i.e., AppTech Payments and Apptech Corp go up and down completely randomly.

Pair Corralation between AppTech Payments and Apptech Corp

Assuming the 90 days horizon AppTech Payments Corp is expected to under-perform the Apptech Corp. But the stock apears to be less risky and, when comparing its historical volatility, AppTech Payments Corp is 2.59 times less risky than Apptech Corp. The stock trades about -0.29 of its potential returns per unit of risk. The Apptech Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  27.00  in Apptech Corp on May 8, 2025 and sell it today you would earn a total of  3.00  from holding Apptech Corp or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	50.0%
Values	Daily Returns

AppTech Payments Corp  vs.  Apptech Corp

AppTech Payments Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days AppTech Payments Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Apptech Corp

Risk-Adjusted Performance

Good

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.

Pair Trading with AppTech Payments and Apptech Corp

The main advantage of trading using opposite AppTech Payments and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppTech Payments 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.

The idea behind AppTech Payments Corp and Apptech Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.