Correlation Between BYD ELECTRONIC and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both BYD ELECTRONIC 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 BYD ELECTRONIC and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYD ELECTRONIC and Apollo Investment Corp, you can compare the effects of market volatilities on BYD ELECTRONIC 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 BYD ELECTRONIC with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD ELECTRONIC and Apollo Investment.
Diversification Opportunities for BYD ELECTRONIC and Apollo Investment
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BYD and Apollo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BYD ELECTRONIC 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 BYD ELECTRONIC 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 BYD ELECTRONIC 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 BYD ELECTRONIC i.e., BYD ELECTRONIC and Apollo Investment go up and down completely randomly.
Pair Corralation between BYD ELECTRONIC and Apollo Investment
Assuming the 90 days trading horizon BYD ELECTRONIC is expected to generate 3.98 times more return on investment than Apollo Investment. However, BYD ELECTRONIC is 3.98 times more volatile than Apollo Investment Corp. It trades about 0.13 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.36 per unit of risk. If you would invest 370.00 in BYD ELECTRONIC on September 1, 2024 and sell it today you would earn a total of 44.00 from holding BYD ELECTRONIC or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD ELECTRONIC vs. Apollo Investment Corp
Performance |
| Timeline |
| BYD ELECTRONIC |
| Apollo Investment Corp |
BYD ELECTRONIC and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD ELECTRONIC and Apollo Investment
The main advantage of trading using opposite BYD ELECTRONIC and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD ELECTRONIC 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.| BYD ELECTRONIC vs. Texas Roadhouse | BYD ELECTRONIC vs. FUYO GENERAL LEASE | BYD ELECTRONIC vs. KAUFMAN ET BROAD | BYD ELECTRONIC vs. QUEEN S ROAD |
| Apollo Investment vs. USWE SPORTS AB | Apollo Investment vs. PARKEN Sport Entertainment | Apollo Investment vs. SPORTING | Apollo Investment vs. Transport International 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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