Correlation Between TERADATA and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both TERADATA 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 TERADATA and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TERADATA and Apollo Investment Corp, you can compare the effects of market volatilities on TERADATA 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 TERADATA with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TERADATA and Apollo Investment.
Diversification Opportunities for TERADATA and Apollo Investment
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TERADATA and Apollo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding TERADATA 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 TERADATA 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 TERADATA 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 TERADATA i.e., TERADATA and Apollo Investment go up and down completely randomly.
Pair Corralation between TERADATA and Apollo Investment
Assuming the 90 days trading horizon TERADATA is expected to generate 0.74 times more return on investment than Apollo Investment. However, TERADATA is 1.35 times less risky than Apollo Investment. It trades about 0.13 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.04 per unit of risk. If you would invest 2,940 in TERADATA on October 30, 2024 and sell it today you would earn a total of 120.00 from holding TERADATA or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TERADATA vs. Apollo Investment Corp
Performance |
| Timeline |
| TERADATA |
| Apollo Investment Corp |
TERADATA and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TERADATA and Apollo Investment
The main advantage of trading using opposite TERADATA and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TERADATA 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.| TERADATA vs. GameStop Corp | TERADATA vs. Sixt Leasing SE | TERADATA vs. Gaming and Leisure | TERADATA vs. Games Workshop Group |
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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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