Correlation Between Apogee Therapeutics, and HHG Capital

Can any of the company-specific risk be diversified away by investing in both Apogee Therapeutics, and HHG Capital 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 Apogee Therapeutics, and HHG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apogee Therapeutics, Common and HHG Capital, you can compare the effects of market volatilities on Apogee Therapeutics, and HHG Capital 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 Apogee Therapeutics, with a short position of HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Therapeutics, and HHG Capital.

Diversification Opportunities for Apogee Therapeutics, and HHG Capital

-0.26

Correlation Coefficient

Apogee Therapeutics,  HHG Capital

Very good diversification

The 3 months correlation between Apogee and HHG is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and HHG Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital and Apogee Therapeutics, 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 Apogee Therapeutics, Common are associated (or correlated) with HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital has no effect on the direction of Apogee Therapeutics, i.e., Apogee Therapeutics, and HHG Capital go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and HHG Capital

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the HHG Capital. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Therapeutics, Common is 112.69 times less risky than HHG Capital. The stock trades about -0.01 of its potential returns per unit of risk. The HHG Capital is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  10.00  in HHG Capital on August 21, 2024 and sell it today you would lose (3.18) from holding HHG Capital or give up 31.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	20.31%
Values	Daily Returns

Apogee Therapeutics, Common  vs.  HHG Capital

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

HHG Capital

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days HHG Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively uncertain fundamental indicators, HHG Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Therapeutics, and HHG Capital

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

The idea behind Apogee Therapeutics, Common and HHG Capital 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.