Correlation Between Network CN and AppYea

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

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

Diversification Opportunities for Network CN and AppYea

-0.04

Correlation Coefficient

Network CN  AppYea

Good diversification

The 3 months correlation between Network and AppYea is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Network CN and AppYea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppYea Inc and Network CN 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 Network CN are associated (or correlated) with AppYea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppYea Inc has no effect on the direction of Network CN i.e., Network CN and AppYea go up and down completely randomly.

Pair Corralation between Network CN and AppYea

Given the investment horizon of 90 days Network CN is expected to generate 4.57 times more return on investment than AppYea. However, Network CN is 4.57 times more volatile than AppYea Inc. It trades about 0.14 of its potential returns per unit of risk. AppYea Inc is currently generating about 0.16 per unit of risk. If you would invest  0.05  in Network CN on June 28, 2025 and sell it today you would earn a total of  0.08  from holding Network CN or generate 160.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Network CN  vs.  AppYea Inc

Network CN

Risk-Adjusted Performance

Fair

Over the last 90 days Network CN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak fundamental indicators, Network CN displayed solid returns over the last few months and may actually be approaching a breakup point.

AppYea Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AppYea Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, AppYea reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Network CN and AppYea

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

The idea behind Network CN and AppYea 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.