Correlation Between Comanche International and Applicad Public

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

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

Diversification Opportunities for Comanche International and Applicad Public

-0.33

Correlation Coefficient

Comanche International  Applicad Public

Very good diversification

The 3 months correlation between Comanche and Applicad is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Comanche International Public and Applicad Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applicad Public and Comanche International 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 Comanche International Public are associated (or correlated) with Applicad Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applicad Public has no effect on the direction of Comanche International i.e., Comanche International and Applicad Public go up and down completely randomly.

Pair Corralation between Comanche International and Applicad Public

Assuming the 90 days trading horizon Comanche International is expected to generate 10.18 times less return on investment than Applicad Public. But when comparing it to its historical volatility, Comanche International Public is 1.45 times less risky than Applicad Public. It trades about 0.03 of its potential returns per unit of risk. Applicad Public is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  163.00  in Applicad Public on April 24, 2025 and sell it today you would earn a total of  105.00  from holding Applicad Public or generate 64.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Comanche International Public  vs.  Applicad Public

Comanche International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comanche International Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Comanche International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Applicad Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Applicad Public are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Applicad Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comanche International and Applicad Public

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

The idea behind Comanche International Public and Applicad Public 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.