Correlation Between AppTech Payments and Cloudflare

Can any of the company-specific risk be diversified away by investing in both AppTech Payments and Cloudflare 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 Cloudflare 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 Cloudflare, you can compare the effects of market volatilities on AppTech Payments and Cloudflare 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 Cloudflare. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppTech Payments and Cloudflare.

Diversification Opportunities for AppTech Payments and Cloudflare

-0.57

Correlation Coefficient

AppTech Payments  Cloudflare

Excellent diversification

The 3 months correlation between AppTech and Cloudflare is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AppTech Payments Corp and Cloudflare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudflare 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 Cloudflare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudflare has no effect on the direction of AppTech Payments i.e., AppTech Payments and Cloudflare go up and down completely randomly.

Pair Corralation between AppTech Payments and Cloudflare

Assuming the 90 days horizon AppTech Payments Corp is expected to under-perform the Cloudflare. In addition to that, AppTech Payments is 6.44 times more volatile than Cloudflare. It trades about -0.11 of its total potential returns per unit of risk. Cloudflare is currently generating about 0.36 per unit of volatility. If you would invest  12,078  in Cloudflare on April 30, 2025 and sell it today you would earn a total of  7,865  from holding Cloudflare or generate 65.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	25.81%
Values	Daily Returns

AppTech Payments Corp  vs.  Cloudflare

AppTech Payments Corp

Risk-Adjusted Performance

Very Weak

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 August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Cloudflare

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cloudflare are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Cloudflare unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AppTech Payments and Cloudflare

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

The idea behind AppTech Payments Corp and Cloudflare 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.