Correlation Between Apollo Medical and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Apollo Medical and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Jacquet Metal.
Diversification Opportunities for Apollo Medical and Jacquet Metal
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and Jacquet is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Apollo Medical i.e., Apollo Medical and Jacquet Metal go up and down completely randomly.
Pair Corralation between Apollo Medical and Jacquet Metal
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.56 times more return on investment than Jacquet Metal. However, Apollo Medical is 1.56 times more volatile than Jacquet Metal Service. It trades about 0.24 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.33 per unit of risk. If you would invest 3,120 in Apollo Medical Holdings on October 29, 2024 and sell it today you would earn a total of 440.00 from holding Apollo Medical Holdings or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. Jacquet Metal Service
Performance |
| Timeline |
| Apollo Medical Holdings |
| Jacquet Metal Service |
Apollo Medical and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Jacquet Metal
The main advantage of trading using opposite Apollo Medical and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Apollo Medical vs. Insteel Industries | Apollo Medical vs. ALERION CLEANPOWER | Apollo Medical vs. NEW MILLENNIUM IRON | Apollo Medical vs. Khiron Life Sciences |
| Jacquet Metal vs. Take Two Interactive Software | Jacquet Metal vs. DETALION GAMES SA | Jacquet Metal vs. GigaMedia | Jacquet Metal vs. Corsair Gaming |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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