Correlation Between Apollo Medical and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on Apollo Medical and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and PARKEN Sport.
Diversification Opportunities for Apollo Medical and PARKEN Sport
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and PARKEN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Apollo Medical i.e., Apollo Medical and PARKEN Sport go up and down completely randomly.
Pair Corralation between Apollo Medical and PARKEN Sport
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.58 times more return on investment than PARKEN Sport. However, Apollo Medical is 1.58 times more volatile than PARKEN Sport Entertainment. It trades about 0.23 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.01 per unit of risk. If you would invest 3,580 in Apollo Medical Holdings on August 31, 2024 and sell it today you would earn a total of 420.00 from holding Apollo Medical Holdings or generate 11.73% 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. PARKEN Sport Entertainment
Performance |
| Timeline |
| Apollo Medical Holdings |
| PARKEN Sport Enterta |
Apollo Medical and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and PARKEN Sport
The main advantage of trading using opposite Apollo Medical and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| PARKEN Sport vs. PennantPark Investment | PARKEN Sport vs. Japan Tobacco | PARKEN Sport vs. BORR DRILLING NEW | PARKEN Sport vs. Virtus Investment Partners |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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