Correlation Between Apollo Medical and TERADATA
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and TERADATA 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 Apollo Medical and TERADATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Medical Holdings and TERADATA, you can compare the effects of market volatilities on Apollo Medical and TERADATA 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 Apollo Medical with a short position of TERADATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and TERADATA.
Diversification Opportunities for Apollo Medical and TERADATA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and TERADATA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and Apollo Medical 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 Apollo Medical Holdings are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of Apollo Medical i.e., Apollo Medical and TERADATA go up and down completely randomly.
Pair Corralation between Apollo Medical and TERADATA
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 3.5 times more return on investment than TERADATA. However, Apollo Medical is 3.5 times more volatile than TERADATA. It trades about 0.15 of its potential returns per unit of risk. TERADATA is currently generating about -0.03 per unit of risk. If you would invest 3,160 in Apollo Medical Holdings on October 25, 2024 and sell it today you would earn a total of 240.00 from holding Apollo Medical Holdings or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Apollo Medical Holdings vs. TERADATA
Performance |
| Timeline |
| Apollo Medical Holdings |
| TERADATA |
Apollo Medical and TERADATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and TERADATA
The main advantage of trading using opposite Apollo Medical and TERADATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, TERADATA 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 TERADATA will offset losses from the drop in TERADATA's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| TERADATA vs. MeVis Medical Solutions | TERADATA vs. Apollo Medical Holdings | TERADATA vs. Peijia Medical Limited | TERADATA vs. SCANDMEDICAL SOLDK 040 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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