Correlation Between IOI Bhd and Apollo Food
Can any of the company-specific risk be diversified away by investing in both IOI Bhd 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 IOI Bhd and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IOI Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on IOI Bhd 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 IOI Bhd with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of IOI Bhd and Apollo Food.
Diversification Opportunities for IOI Bhd and Apollo Food
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IOI and Apollo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding IOI 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 IOI Bhd 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 IOI 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 IOI Bhd i.e., IOI Bhd and Apollo Food go up and down completely randomly.
Pair Corralation between IOI Bhd and Apollo Food
Assuming the 90 days trading horizon IOI Bhd is expected to under-perform the Apollo Food. But the stock apears to be less risky and, when comparing its historical volatility, IOI Bhd is 2.12 times less risky than Apollo Food. The stock trades about -0.03 of its potential returns per unit of risk. The Apollo Food Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Apollo Food Holdings on October 26, 2024 and sell it today you would earn a total of 42.00 from holding Apollo Food Holdings or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
IOI Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| IOI Bhd |
| Apollo Food Holdings |
IOI Bhd and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IOI Bhd and Apollo Food
The main advantage of trading using opposite IOI Bhd and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IOI Bhd 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.| IOI Bhd vs. Nestle Bhd | IOI Bhd vs. PPB Group Bhd | IOI Bhd vs. FGV Holdings Bhd | IOI Bhd vs. British American Tobacco |
| Apollo Food vs. Nestle Bhd | Apollo Food vs. PPB Group Bhd | Apollo Food vs. IOI Bhd | Apollo Food vs. FGV Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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