Correlation Between Verint Systems and Apptech Corp

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

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

Diversification Opportunities for Verint Systems and Apptech Corp

-0.71

Correlation Coefficient

Verint Systems  Apptech Corp

Pay attention - limited upside

The 3 months correlation between Verint and Apptech is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Verint Systems and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and Verint Systems 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 Verint Systems are associated (or correlated) with Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Verint Systems i.e., Verint Systems and Apptech Corp go up and down completely randomly.

Pair Corralation between Verint Systems and Apptech Corp

Given the investment horizon of 90 days Verint Systems is expected to generate 44.61 times less return on investment than Apptech Corp. But when comparing it to its historical volatility, Verint Systems is 12.43 times less risky than Apptech Corp. It trades about 0.05 of its potential returns per unit of risk. Apptech Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  26.00  in Apptech Corp on May 15, 2025 and sell it today you would earn a total of  4.00  from holding Apptech Corp or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	24.19%
Values	Daily Returns

Verint Systems  vs.  Apptech Corp

Verint Systems

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Verint Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Verint Systems may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Apptech Corp

Risk-Adjusted Performance

Good

Over the last 90 days Apptech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal fundamental indicators, Apptech Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Verint Systems and Apptech Corp

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

The idea behind Verint Systems and Apptech Corp 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.

Check out your portfolio center.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.