Correlation Between Apimeds Pharmaceuticals and Talphera

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

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

Diversification Opportunities for Apimeds Pharmaceuticals and Talphera

0.46

Correlation Coefficient

Apimeds Pharmaceuticals  Talphera

Very weak diversification

The 3 months correlation between Apimeds and Talphera is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apimeds Pharmaceuticals US, and Talphera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talphera and Apimeds Pharmaceuticals 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 Apimeds Pharmaceuticals US, are associated (or correlated) with Talphera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talphera has no effect on the direction of Apimeds Pharmaceuticals i.e., Apimeds Pharmaceuticals and Talphera go up and down completely randomly.

Pair Corralation between Apimeds Pharmaceuticals and Talphera

Given the investment horizon of 90 days Apimeds Pharmaceuticals is expected to generate 1.43 times less return on investment than Talphera. In addition to that, Apimeds Pharmaceuticals is 1.48 times more volatile than Talphera. It trades about 0.05 of its total potential returns per unit of risk. Talphera is currently generating about 0.1 per unit of volatility. If you would invest  94.00  in Talphera on September 12, 2025 and sell it today you would earn a total of  31.00  from holding Talphera or generate 32.98% return on investment over 90 days.

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

Apimeds Pharmaceuticals US,  vs.  Talphera

Apimeds Pharmaceuticals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Apimeds Pharmaceuticals US, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Apimeds Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Talphera

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Talphera are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Talphera demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apimeds Pharmaceuticals and Talphera

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

The idea behind Apimeds Pharmaceuticals US, and Talphera 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.