Correlation Between Apollo Medical and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on Apollo Medical and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and SINGAPORE AIRLINES.
Diversification Opportunities for Apollo Medical and SINGAPORE AIRLINES
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and SINGAPORE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of Apollo Medical i.e., Apollo Medical and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Apollo Medical and SINGAPORE AIRLINES
Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.94 times more return on investment than SINGAPORE AIRLINES. However, Apollo Medical is 1.94 times more volatile than SINGAPORE AIRLINES. It trades about 0.22 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.02 per unit of risk. If you would invest 3,580 in Apollo Medical Holdings on August 29, 2024 and sell it today you would earn a total of 400.00 from holding Apollo Medical Holdings or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apollo Medical Holdings vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Apollo Medical Holdings |
| SINGAPORE AIRLINES |
Apollo Medical and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and SINGAPORE AIRLINES
The main advantage of trading using opposite Apollo Medical and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Superior Plus Corp | SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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