Correlation Between VIRGIN WINES and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and Apollo Investment 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 VIRGIN WINES and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and Apollo Investment Corp, you can compare the effects of market volatilities on VIRGIN WINES and Apollo Investment 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 VIRGIN WINES with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and Apollo Investment.
Diversification Opportunities for VIRGIN WINES and Apollo Investment
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VIRGIN and Apollo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and Apollo Investment go up and down completely randomly.
Pair Corralation between VIRGIN WINES and Apollo Investment
Assuming the 90 days horizon VIRGIN WINES UK is expected to under-perform the Apollo Investment. In addition to that, VIRGIN WINES is 11.86 times more volatile than Apollo Investment Corp. It trades about -0.3 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.12 per unit of volatility. If you would invest 1,315 in Apollo Investment Corp on November 29, 2024 and sell it today you would earn a total of 32.00 from holding Apollo Investment Corp or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIRGIN WINES UK vs. Apollo Investment Corp
Performance |
| Timeline |
| VIRGIN WINES UK |
| Apollo Investment Corp |
VIRGIN WINES and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and Apollo Investment
The main advantage of trading using opposite VIRGIN WINES and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| VIRGIN WINES vs. Apyx Medical Corp | VIRGIN WINES vs. EIDESVIK OFFSHORE NK | VIRGIN WINES vs. American Airlines Group | VIRGIN WINES vs. Japan Medical Dynamic |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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