Correlation Between STMicroelectronics and Apogee Therapeutics,

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

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

Diversification Opportunities for STMicroelectronics and Apogee Therapeutics,

0.44

Correlation Coefficient

STMicroelectronics  Apogee Therapeutics,

Very weak diversification

The 3 months correlation between STMicroelectronics and Apogee is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV ADR and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, and STMicroelectronics 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 STMicroelectronics NV ADR are associated (or correlated) with Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between STMicroelectronics and Apogee Therapeutics,

Considering the 90-day investment horizon STMicroelectronics NV ADR is expected to generate 0.84 times more return on investment than Apogee Therapeutics,. However, STMicroelectronics NV ADR is 1.19 times less risky than Apogee Therapeutics,. It trades about 0.01 of its potential returns per unit of risk. Apogee Therapeutics, Common is currently generating about -0.02 per unit of risk. If you would invest  2,534  in STMicroelectronics NV ADR on May 11, 2025 and sell it today you would lose (17.00) from holding STMicroelectronics NV ADR or give up 0.67% of portfolio value over 90 days.

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

STMicroelectronics NV ADR  vs.  Apogee Therapeutics, Common

STMicroelectronics NV ADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in STMicroelectronics NV ADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, STMicroelectronics is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Apogee Therapeutics,

Risk-Adjusted Performance

Weakest

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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with STMicroelectronics and Apogee Therapeutics,

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

The idea behind STMicroelectronics NV ADR and Apogee Therapeutics, Common 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.