Correlation Between Apollo Medical and Genertec Universal
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Genertec Universal 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 Genertec Universal 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 Genertec Universal Medical, you can compare the effects of market volatilities on Apollo Medical and Genertec Universal 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 Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Genertec Universal.
Diversification Opportunities for Apollo Medical and Genertec Universal
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Genertec is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal 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 Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of Apollo Medical i.e., Apollo Medical and Genertec Universal go up and down completely randomly.
Pair Corralation between Apollo Medical and Genertec Universal
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 2.3 times more return on investment than Genertec Universal. However, Apollo Medical is 2.3 times more volatile than Genertec Universal Medical. It trades about 0.22 of its potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.13 per unit of risk. If you would invest 3,060 in Apollo Medical Holdings on November 5, 2024 and sell it today you would earn a total of 440.00 from holding Apollo Medical Holdings or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. Genertec Universal Medical
Performance |
| Timeline |
| Apollo Medical Holdings |
| Genertec Universal |
Apollo Medical and Genertec Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Genertec Universal
The main advantage of trading using opposite Apollo Medical and Genertec Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Genertec Universal 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 Genertec Universal will offset losses from the drop in Genertec Universal's long position.| Apollo Medical vs. Nomad Foods | Apollo Medical vs. CORNISH METALS INC | Apollo Medical vs. AIR PRODCHEMICALS | Apollo Medical vs. SENECA FOODS A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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