Correlation Between Apollo Medical and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Allegheny Technologies 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 Allegheny Technologies 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 Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Apollo Medical and Allegheny Technologies 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 Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Allegheny Technologies.
Diversification Opportunities for Apollo Medical and Allegheny Technologies
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Allegheny is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Apollo Medical i.e., Apollo Medical and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Apollo Medical and Allegheny Technologies
Assuming the 90 days horizon Apollo Medical is expected to generate 2.74 times less return on investment than Allegheny Technologies. But when comparing it to its historical volatility, Apollo Medical Holdings is 1.08 times less risky than Allegheny Technologies. It trades about 0.02 of its potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Allegheny Technologies Incorporated on November 6, 2024 and sell it today you would earn a total of 1,724 from holding Allegheny Technologies Incorporated or generate 46.59% 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. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Apollo Medical Holdings |
| Allegheny Technologies |
Apollo Medical and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Allegheny Technologies
The main advantage of trading using opposite Apollo Medical and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| Apollo Medical vs. NIGHTINGALE HEALTH EO | Apollo Medical vs. Chesapeake Utilities | Apollo Medical vs. ON SEMICONDUCTOR | Apollo Medical vs. Elmos Semiconductor SE |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |