Correlation Between Binasat Communications and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Binasat Communications 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 Binasat Communications and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binasat Communications Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on Binasat Communications 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 Binasat Communications with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binasat Communications and Apollo Food.
Diversification Opportunities for Binasat Communications and Apollo Food
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binasat and Apollo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Binasat Communications 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 Binasat Communications 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 Binasat Communications 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 Binasat Communications i.e., Binasat Communications and Apollo Food go up and down completely randomly.
Pair Corralation between Binasat Communications and Apollo Food
Assuming the 90 days trading horizon Binasat Communications Bhd is expected to under-perform the Apollo Food. In addition to that, Binasat Communications is 1.07 times more volatile than Apollo Food Holdings. It trades about -0.05 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.06 per unit of volatility. If you would invest 501.00 in Apollo Food Holdings on November 3, 2024 and sell it today you would earn a total of 162.00 from holding Apollo Food Holdings or generate 32.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binasat Communications Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| Binasat Communications |
| Apollo Food Holdings |
Binasat Communications and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binasat Communications and Apollo Food
The main advantage of trading using opposite Binasat Communications and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binasat Communications 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.| Binasat Communications vs. Petronas Chemicals Group | Binasat Communications vs. Icon Offshore Bhd | Binasat Communications vs. Homeritz Bhd | Binasat Communications vs. Mercury Industries Bhd |
| Apollo Food vs. Farm Price Holdings | Apollo Food vs. RHB Bank Bhd | Apollo Food vs. Sunway Construction Group | Apollo Food vs. Bank Islam Malaysia |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |