Correlation Between Sports Toto and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Sports Toto 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 Sports Toto and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sports Toto Berhad and Apollo Food Holdings, you can compare the effects of market volatilities on Sports Toto 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 Sports Toto with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and Apollo Food.
Diversification Opportunities for Sports Toto and Apollo Food
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sports and Apollo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad 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 Sports Toto 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 Sports Toto Berhad 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 Sports Toto i.e., Sports Toto and Apollo Food go up and down completely randomly.
Pair Corralation between Sports Toto and Apollo Food
Assuming the 90 days trading horizon Sports Toto Berhad is expected to under-perform the Apollo Food. In addition to that, Sports Toto is 1.19 times more volatile than Apollo Food Holdings. It trades about -0.09 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.01 per unit of volatility. If you would invest 647.00 in Apollo Food Holdings on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Apollo Food Holdings or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Toto Berhad vs. Apollo Food Holdings
Performance |
| Timeline |
| Sports Toto Berhad |
| Apollo Food Holdings |
Sports Toto and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and Apollo Food
The main advantage of trading using opposite Sports Toto and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto 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.| Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. OpenSys M Bhd | Sports Toto vs. Insas Bhd |
| Apollo Food vs. Duopharma Biotech Bhd | Apollo Food vs. Farm Price Holdings | Apollo Food vs. PMB Technology Bhd | Apollo Food vs. Kawan Food 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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