Correlation Between Apollo Medical and Capgemini
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Capgemini 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 Capgemini 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 Capgemini SE, you can compare the effects of market volatilities on Apollo Medical and Capgemini 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 Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Capgemini.
Diversification Opportunities for Apollo Medical and Capgemini
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and Capgemini is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of Apollo Medical i.e., Apollo Medical and Capgemini go up and down completely randomly.
Pair Corralation between Apollo Medical and Capgemini
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.18 times more return on investment than Capgemini. However, Apollo Medical is 1.18 times more volatile than Capgemini SE. It trades about 0.22 of its potential returns per unit of risk. Capgemini SE is currently generating about -0.3 per unit of risk. If you would invest 3,580 in Apollo Medical Holdings on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Apollo Medical Holdings or generate 11.17% 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. Capgemini SE
Performance |
| Timeline |
| Apollo Medical Holdings |
| Capgemini SE |
Apollo Medical and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Capgemini
The main advantage of trading using opposite Apollo Medical and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| Capgemini vs. Cognizant Technology Solutions | Capgemini vs. Superior Plus Corp | Capgemini vs. NMI Holdings | Capgemini vs. Origin Agritech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |