Correlation Between Apptech Corp and OLB

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

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

Diversification Opportunities for Apptech Corp and OLB

-0.74

Correlation Coefficient

Apptech Corp  OLB

Pay attention - limited upside

The 3 months correlation between Apptech and OLB is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apptech Corp and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group and Apptech Corp 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 Apptech Corp are associated (or correlated) with OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of Apptech Corp i.e., Apptech Corp and OLB go up and down completely randomly.

Pair Corralation between Apptech Corp and OLB

Given the investment horizon of 90 days Apptech Corp is expected to generate 2.6 times more return on investment than OLB. However, Apptech Corp is 2.6 times more volatile than OLB Group. It trades about 0.08 of its potential returns per unit of risk. OLB Group is currently generating about -0.01 per unit of risk. If you would invest  24.00  in Apptech Corp on August 26, 2025 and sell it today you would earn a total of  5.00  from holding Apptech Corp or generate 20.83% return on investment over 90 days.

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

Apptech Corp  vs.  OLB Group

Apptech Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Apptech Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Apptech Corp showed solid returns over the last few months and may actually be approaching a breakup point.

OLB Group

Risk-Adjusted Performance

Weakest

Over the last 90 days OLB Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, OLB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apptech Corp and OLB

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

The idea behind Apptech Corp and OLB Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.