Correlation Between Appgate and Alfi

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

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

Diversification Opportunities for Appgate and Alfi

0.0

Correlation Coefficient

Appgate  Alfi

Pay attention - limited upside

The 3 months correlation between Appgate and Alfi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Appgate and Alfi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfi Inc and Appgate 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 Appgate are associated (or correlated) with Alfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfi Inc has no effect on the direction of Appgate i.e., Appgate and Alfi go up and down completely randomly.

Pair Corralation between Appgate and Alfi

If you would invest (100.00) in Alfi Inc on May 6, 2025 and sell it today you would earn a total of  100.00  from holding Alfi Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Appgate  vs.  Alfi Inc

Appgate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Appgate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Appgate is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Alfi Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alfi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Alfi is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Appgate and Alfi

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

The idea behind Appgate and Alfi Inc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.