Correlation Between Apollo Medical and BlueScope Steel
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and BlueScope Steel 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 BlueScope Steel 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 BlueScope Steel Limited, you can compare the effects of market volatilities on Apollo Medical and BlueScope Steel 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 BlueScope Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and BlueScope Steel.
Diversification Opportunities for Apollo Medical and BlueScope Steel
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and BlueScope is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and BlueScope Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueScope Steel 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 BlueScope Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueScope Steel has no effect on the direction of Apollo Medical i.e., Apollo Medical and BlueScope Steel go up and down completely randomly.
Pair Corralation between Apollo Medical and BlueScope Steel
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 0.76 times more return on investment than BlueScope Steel. However, Apollo Medical Holdings is 1.32 times less risky than BlueScope Steel. It trades about 0.26 of its potential returns per unit of risk. BlueScope Steel Limited is currently generating about 0.15 per unit of risk. If you would invest 3,580 in Apollo Medical Holdings on September 5, 2024 and sell it today you would earn a total of 480.00 from holding Apollo Medical Holdings or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. BlueScope Steel Limited
Performance |
| Timeline |
| Apollo Medical Holdings |
| BlueScope Steel |
Apollo Medical and BlueScope Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and BlueScope Steel
The main advantage of trading using opposite Apollo Medical and BlueScope Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, BlueScope Steel 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 BlueScope Steel will offset losses from the drop in BlueScope Steel's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| BlueScope Steel vs. SCANDMEDICAL SOLDK 040 | BlueScope Steel vs. Apollo Medical Holdings | BlueScope Steel vs. CVR Medical Corp | BlueScope Steel vs. Microbot Medical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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