Correlation Between Aperam SA and Public Joint

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

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

Diversification Opportunities for Aperam SA and Public Joint

0.0

Correlation Coefficient

Aperam SA  Public Joint

Pay attention - limited upside

The 3 months correlation between Aperam and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aperam SA and Public Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Joint Stock and Aperam SA 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 Aperam SA are associated (or correlated) with Public Joint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Joint Stock has no effect on the direction of Aperam SA i.e., Aperam SA and Public Joint go up and down completely randomly.

Pair Corralation between Aperam SA and Public Joint

If you would invest  2,190  in Public Joint Stock on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Public Joint Stock or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Aperam SA  vs.  Public Joint Stock

Aperam SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aperam SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aperam SA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Public Joint Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Public Joint Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Public Joint is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aperam SA and Public Joint

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

The idea behind Aperam SA and Public Joint Stock 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.