Correlation Between Apollo Medical and Apple
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Apollo Medical and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Apple.
Diversification Opportunities for Apollo Medical and Apple
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Apple is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Apollo Medical i.e., Apollo Medical and Apple go up and down completely randomly.
Pair Corralation between Apollo Medical and Apple
Assuming the 90 days horizon Apollo Medical is expected to generate 2.41 times less return on investment than Apple. But when comparing it to its historical volatility, Apollo Medical Holdings is 1.23 times less risky than Apple. It trades about 0.06 of its potential returns per unit of risk. Apple Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17,511 in Apple Inc on August 29, 2024 and sell it today you would earn a total of 4,684 from holding Apple Inc or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. Apple Inc
Performance |
| Timeline |
| Apollo Medical Holdings |
| Apple Inc |
Apollo Medical and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Apple
The main advantage of trading using opposite Apollo Medical and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| Apple vs. MAVEN WIRELESS SWEDEN | Apple vs. MOVIE GAMES SA | Apple vs. OFFICE DEPOT | Apple vs. AGRICULTBK HADR25 YC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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