Correlation Between Apollo Medical and Tenaris SA
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Tenaris SA 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 Tenaris SA 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 Tenaris SA, you can compare the effects of market volatilities on Apollo Medical and Tenaris SA 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 Tenaris SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Tenaris SA.
Diversification Opportunities for Apollo Medical and Tenaris SA
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and Tenaris is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Tenaris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaris SA 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 Tenaris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaris SA has no effect on the direction of Apollo Medical i.e., Apollo Medical and Tenaris SA go up and down completely randomly.
Pair Corralation between Apollo Medical and Tenaris SA
Assuming the 90 days horizon Apollo Medical Holdings is expected to under-perform the Tenaris SA. In addition to that, Apollo Medical is 1.23 times more volatile than Tenaris SA. It trades about -0.97 of its total potential returns per unit of risk. Tenaris SA is currently generating about 0.11 per unit of volatility. If you would invest 3,540 in Tenaris SA on October 7, 2024 and sell it today you would earn a total of 80.00 from holding Tenaris SA or generate 2.26% 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. Tenaris SA
Performance |
| Timeline |
| Apollo Medical Holdings |
| Tenaris SA |
Apollo Medical and Tenaris SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Tenaris SA
The main advantage of trading using opposite Apollo Medical and Tenaris SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Tenaris SA 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 Tenaris SA will offset losses from the drop in Tenaris SA's long position.| Apollo Medical vs. PDS Biotechnology Corp | Apollo Medical vs. PKSHA TECHNOLOGY INC | Apollo Medical vs. Pure Storage | Apollo Medical vs. Micron Technology |
| Tenaris SA vs. FUYO GENERAL LEASE | Tenaris SA vs. Global Ship Lease | Tenaris SA vs. SENECA FOODS A | Tenaris SA vs. PDS Biotechnology Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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