Correlation Between Aptos and Open Loot

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

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

Diversification Opportunities for Aptos and Open Loot

0.69

Correlation Coefficient

Aptos  Open Loot

Poor diversification

The 3 months correlation between Aptos and Open is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aptos and Open Loot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Loot 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 Open Loot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Loot has no effect on the direction of Aptos i.e., Aptos and Open Loot go up and down completely randomly.

Pair Corralation between Aptos and Open Loot

Assuming the 90 days trading horizon Aptos is expected to generate 0.53 times more return on investment than Open Loot. However, Aptos is 1.88 times less risky than Open Loot. It trades about 0.03 of its potential returns per unit of risk. Open Loot is currently generating about -0.08 per unit of risk. If you would invest  527.00  in Aptos on April 21, 2025 and sell it today you would earn a total of  8.00  from holding Aptos or generate 1.52% return on investment over 90 days.

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

Aptos  vs.  Open Loot

Aptos

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aptos are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Aptos may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Open Loot

Risk-Adjusted Performance

Very Weak

Over the last 90 days Open Loot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for Open Loot shareholders.

Pair Trading with Aptos and Open Loot

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

The idea behind Aptos and Open Loot 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.