Correlation Between Apollo Medical and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Canon Marketing 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 Canon Marketing 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 Canon Marketing Japan, you can compare the effects of market volatilities on Apollo Medical and Canon Marketing 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 Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Canon Marketing.
Diversification Opportunities for Apollo Medical and Canon Marketing
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Canon is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan 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 Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Apollo Medical i.e., Apollo Medical and Canon Marketing go up and down completely randomly.
Pair Corralation between Apollo Medical and Canon Marketing
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 2.69 times more return on investment than Canon Marketing. However, Apollo Medical is 2.69 times more volatile than Canon Marketing Japan. It trades about 0.21 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about -0.14 per unit of risk. If you would invest 3,160 in Apollo Medical Holdings on October 28, 2024 and sell it today you would earn a total of 400.00 from holding Apollo Medical Holdings or generate 12.66% 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. Canon Marketing Japan
Performance |
| Timeline |
| Apollo Medical Holdings |
| Canon Marketing Japan |
Apollo Medical and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Canon Marketing
The main advantage of trading using opposite Apollo Medical and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.| Apollo Medical vs. Perseus Mining Limited | Apollo Medical vs. MAGNUM MINING EXP | Apollo Medical vs. Harmony Gold Mining | Apollo Medical vs. betterU Education Corp |
| Canon Marketing vs. FORMPIPE SOFTWARE AB | Canon Marketing vs. Apollo Medical Holdings | Canon Marketing vs. AXWAY SOFTWARE EO | Canon Marketing vs. CVR Medical Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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