Correlation Between Apollo Medical and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on Apollo Medical and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and InPlay Oil.
Diversification Opportunities for Apollo Medical and InPlay Oil
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and InPlay is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of Apollo Medical i.e., Apollo Medical and InPlay Oil go up and down completely randomly.
Pair Corralation between Apollo Medical and InPlay Oil
Assuming the 90 days horizon Apollo Medical Holdings is expected to under-perform the InPlay Oil. In addition to that, Apollo Medical is 1.18 times more volatile than InPlay Oil Corp. It trades about -0.53 of its total potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.49 per unit of volatility. If you would invest 119.00 in InPlay Oil Corp on September 24, 2024 and sell it today you would lose (16.00) from holding InPlay Oil Corp or give up 13.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. InPlay Oil Corp
Performance |
| Timeline |
| Apollo Medical Holdings |
| InPlay Oil Corp |
Apollo Medical and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and InPlay Oil
The main advantage of trading using opposite Apollo Medical and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| InPlay Oil vs. CompuGroup Medical SE | InPlay Oil vs. IMPERIAL TOBACCO | InPlay Oil vs. Compugroup Medical SE | InPlay Oil vs. Apollo Medical Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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