Correlation Between Pantech Group and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Apollo Food 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 Pantech Group and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantech Group Holdings and Apollo Food Holdings, you can compare the effects of market volatilities on Pantech Group and Apollo Food 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 Pantech Group with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Apollo Food.
Diversification Opportunities for Pantech Group and Apollo Food
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pantech and Apollo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Apollo Food Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Food Holdings and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with Apollo Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Food Holdings has no effect on the direction of Pantech Group i.e., Pantech Group and Apollo Food go up and down completely randomly.
Pair Corralation between Pantech Group and Apollo Food
Assuming the 90 days trading horizon Pantech Group is expected to generate 1.84 times less return on investment than Apollo Food. But when comparing it to its historical volatility, Pantech Group Holdings is 1.22 times less risky than Apollo Food. It trades about 0.05 of its potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Apollo Food Holdings on August 24, 2024 and sell it today you would earn a total of 312.00 from holding Apollo Food Holdings or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Pantech Group Holdings vs. Apollo Food Holdings
Performance |
| Timeline |
| Pantech Group Holdings |
| Apollo Food Holdings |
Pantech Group and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Apollo Food
The main advantage of trading using opposite Pantech Group and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Apollo Food 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 Food will offset losses from the drop in Apollo Food's long position.| Pantech Group vs. Apollo Food Holdings | Pantech Group vs. Oriental Food Industries | Pantech Group vs. Dataprep Holdings Bhd | Pantech Group vs. Shangri La Hotels |
| Apollo Food vs. Nestle Bhd | Apollo Food vs. FGV Holdings Bhd | Apollo Food vs. FARM FRESH BERHAD | Apollo Food vs. Kawan Food Bhd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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