Correlation Between Apollo Medical and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Hawesko Holding 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 Hawesko Holding 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 Hawesko Holding AG, you can compare the effects of market volatilities on Apollo Medical and Hawesko Holding 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 Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Hawesko Holding.
Diversification Opportunities for Apollo Medical and Hawesko Holding
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and Hawesko is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of Apollo Medical i.e., Apollo Medical and Hawesko Holding go up and down completely randomly.
Pair Corralation between Apollo Medical and Hawesko Holding
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.39 times more return on investment than Hawesko Holding. However, Apollo Medical is 1.39 times more volatile than Hawesko Holding AG. It trades about 0.09 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.08 per unit of risk. If you would invest 3,580 in Apollo Medical Holdings on September 12, 2024 and sell it today you would earn a total of 160.00 from holding Apollo Medical Holdings or generate 4.47% 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. Hawesko Holding AG
Performance |
| Timeline |
| Apollo Medical Holdings |
| Hawesko Holding AG |
Apollo Medical and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Hawesko Holding
The main advantage of trading using opposite Apollo Medical and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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