Correlation Between Postal Savings and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Postal Savings 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 Postal Savings and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and Apollo Investment Corp, you can compare the effects of market volatilities on Postal Savings 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 Postal Savings with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Apollo Investment.
Diversification Opportunities for Postal Savings and Apollo Investment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Postal and Apollo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank 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 Postal Savings 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 Postal Savings Bank 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 Postal Savings i.e., Postal Savings and Apollo Investment go up and down completely randomly.
Pair Corralation between Postal Savings and Apollo Investment
Assuming the 90 days horizon Postal Savings is expected to generate 21.35 times less return on investment than Apollo Investment. In addition to that, Postal Savings is 1.4 times more volatile than Apollo Investment Corp. It trades about 0.01 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.26 per unit of volatility. If you would invest 1,234 in Apollo Investment Corp on August 31, 2024 and sell it today you would earn a total of 95.00 from holding Apollo Investment Corp or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Postal Savings Bank vs. Apollo Investment Corp
Performance |
| Timeline |
| Postal Savings Bank |
| Apollo Investment Corp |
Postal Savings and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Apollo Investment
The main advantage of trading using opposite Postal Savings and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings 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.| Postal Savings vs. ANTA SPORTS PRODUCT | Postal Savings vs. USWE SPORTS AB | Postal Savings vs. PARKEN Sport Entertainment | Postal Savings vs. ADRIATIC METALS LS 013355 |
| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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