Correlation Between Apollo Medical and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Molson Coors 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 Molson Coors 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 Molson Coors Beverage, you can compare the effects of market volatilities on Apollo Medical and Molson Coors 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 Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Molson Coors.
Diversification Opportunities for Apollo Medical and Molson Coors
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Molson is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage 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 Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of Apollo Medical i.e., Apollo Medical and Molson Coors go up and down completely randomly.
Pair Corralation between Apollo Medical and Molson Coors
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.22 times more return on investment than Molson Coors. However, Apollo Medical is 1.22 times more volatile than Molson Coors Beverage. It trades about 0.03 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.04 per unit of risk. If you would invest 3,200 in Apollo Medical Holdings on September 14, 2024 and sell it today you would earn a total of 420.00 from holding Apollo Medical Holdings or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. Molson Coors Beverage
Performance |
| Timeline |
| Apollo Medical Holdings |
| Molson Coors Beverage |
Apollo Medical and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Molson Coors
The main advantage of trading using opposite Apollo Medical and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| Apollo Medical vs. Zijin Mining Group | Apollo Medical vs. QUEEN S ROAD | Apollo Medical vs. Texas Roadhouse | Apollo Medical vs. GALENA MINING LTD |
| Molson Coors vs. MOLSON RS BEVERAGE | Molson Coors vs. MeVis Medical Solutions | Molson Coors vs. Tyson Foods | Molson Coors vs. Apollo Medical Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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