Correlation Between Allegiant Gold and Appili Therapeutics

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

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

Diversification Opportunities for Allegiant Gold and Appili Therapeutics

-0.61

Correlation Coefficient

Allegiant Gold  Appili Therapeutics

Excellent diversification

The 3 months correlation between Allegiant and Appili is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Allegiant Gold and Appili Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appili Therapeutics and Allegiant Gold 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 Allegiant Gold are associated (or correlated) with Appili Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appili Therapeutics has no effect on the direction of Allegiant Gold i.e., Allegiant Gold and Appili Therapeutics go up and down completely randomly.

Pair Corralation between Allegiant Gold and Appili Therapeutics

Assuming the 90 days trading horizon Allegiant Gold is expected to generate 1.23 times more return on investment than Appili Therapeutics. However, Allegiant Gold is 1.23 times more volatile than Appili Therapeutics. It trades about 0.19 of its potential returns per unit of risk. Appili Therapeutics is currently generating about 0.03 per unit of risk. If you would invest  14.00  in Allegiant Gold on May 6, 2025 and sell it today you would earn a total of  49.00  from holding Allegiant Gold or generate 350.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Allegiant Gold  vs.  Appili Therapeutics

Allegiant Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allegiant Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Allegiant Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Appili Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Appili Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Appili Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Allegiant Gold and Appili Therapeutics

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

The idea behind Allegiant Gold and Appili Therapeutics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.