Correlation Between Eversafe Rubber and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Eversafe Rubber and Apollo Food 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 Eversafe Rubber and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eversafe Rubber Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on Eversafe Rubber and Apollo Food 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 Eversafe Rubber with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eversafe Rubber and Apollo Food.
Diversification Opportunities for Eversafe Rubber and Apollo Food
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eversafe and Apollo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eversafe Rubber Bhd and Apollo Food Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Food Holdings and Eversafe Rubber 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 Eversafe Rubber Bhd are associated (or correlated) with Apollo Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Food Holdings has no effect on the direction of Eversafe Rubber i.e., Eversafe Rubber and Apollo Food go up and down completely randomly.
Pair Corralation between Eversafe Rubber and Apollo Food
Assuming the 90 days trading horizon Eversafe Rubber is expected to generate 9.85 times less return on investment than Apollo Food. In addition to that, Eversafe Rubber is 2.0 times more volatile than Apollo Food Holdings. It trades about 0.0 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.08 per unit of volatility. If you would invest 337.00 in Apollo Food Holdings on August 30, 2024 and sell it today you would earn a total of 307.00 from holding Apollo Food Holdings or generate 91.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Eversafe Rubber Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| Eversafe Rubber Bhd |
| Apollo Food Holdings |
Eversafe Rubber and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eversafe Rubber and Apollo Food
The main advantage of trading using opposite Eversafe Rubber and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eversafe Rubber position performs unexpectedly, Apollo Food 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 Apollo Food will offset losses from the drop in Apollo Food's long position.| Eversafe Rubber vs. Computer Forms Bhd | Eversafe Rubber vs. KPJ Healthcare Bhd | Eversafe Rubber vs. Press Metal Bhd | Eversafe Rubber vs. YX Precious Metals |
| Apollo Food vs. Aurelius Technologies Bhd | Apollo Food vs. Minetech Resources Bhd | Apollo Food vs. Pantech Group Holdings | Apollo Food vs. Resintech Bhd |
Check out your portfolio center.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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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