Correlation Between Advanced Proteome and Allegion PLC

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

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

Diversification Opportunities for Advanced Proteome and Allegion PLC

0.0

Correlation Coefficient

Advanced Proteome  Allegion PLC

Pay attention - limited upside

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

Pair Corralation between Advanced Proteome and Allegion PLC

If you would invest  14,327  in Allegion PLC on May 12, 2025 and sell it today you would earn a total of  2,045  from holding Allegion PLC or generate 14.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Advanced Proteome Therapeutics  vs.  Allegion PLC

Advanced Proteome

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Proteome Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advanced Proteome is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Allegion PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allegion PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Allegion PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Proteome and Allegion PLC

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

The idea behind Advanced Proteome Therapeutics and Allegion PLC 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..