Correlation Between Aptos and COTI

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

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

Diversification Opportunities for Aptos and COTI

0.87

Correlation Coefficient

Aptos  COTI

Very poor diversification

The 3 months correlation between Aptos and COTI is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aptos and COTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COTI and Aptos 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 Aptos are associated (or correlated) with COTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COTI has no effect on the direction of Aptos i.e., Aptos and COTI go up and down completely randomly.

Pair Corralation between Aptos and COTI

Assuming the 90 days trading horizon Aptos is expected to generate 0.96 times more return on investment than COTI. However, Aptos is 1.04 times less risky than COTI. It trades about 0.02 of its potential returns per unit of risk. COTI is currently generating about -0.02 per unit of risk. If you would invest  555.00  in Aptos on April 24, 2025 and sell it today you would lose (7.00) from holding Aptos or give up 1.26% of portfolio value over 90 days.

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

Aptos  vs.  COTI

Aptos

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aptos are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Aptos is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

COTI

Risk-Adjusted Performance

Very Weak

Over the last 90 days COTI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for COTI shareholders.

Pair Trading with Aptos and COTI

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

The idea behind Aptos and COTI 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.