Correlation Between Apollo Medical and H World
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and H World 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 H World 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 H World Group, you can compare the effects of market volatilities on Apollo Medical and H World 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 H World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and H World.
Diversification Opportunities for Apollo Medical and H World
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and CL4A is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and H World Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H World Group 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 H World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H World Group has no effect on the direction of Apollo Medical i.e., Apollo Medical and H World go up and down completely randomly.
Pair Corralation between Apollo Medical and H World
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 0.64 times more return on investment than H World. However, Apollo Medical Holdings is 1.57 times less risky than H World. It trades about 0.03 of its potential returns per unit of risk. H World Group is currently generating about 0.0 per unit of risk. If you would invest 3,460 in Apollo Medical Holdings on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Apollo Medical Holdings or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. H World Group
Performance |
| Timeline |
| Apollo Medical Holdings |
| H World Group |
Apollo Medical and H World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and H World
The main advantage of trading using opposite Apollo Medical and H World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, H World 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 H World will offset losses from the drop in H World's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| H World vs. Apollo Medical Holdings | H World vs. Japan Medical Dynamic | H World vs. Canadian Utilities Limited | H World vs. Guidewire Software |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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