Correlation Between Apollo Investment and Chegg
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Chegg 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 Apollo Investment and Chegg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Investment Corp and Chegg Inc, you can compare the effects of market volatilities on Apollo Investment and Chegg 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 Apollo Investment with a short position of Chegg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Chegg.
Diversification Opportunities for Apollo Investment and Chegg
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Chegg is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Chegg Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chegg Inc and Apollo Investment 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 Apollo Investment Corp are associated (or correlated) with Chegg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chegg Inc has no effect on the direction of Apollo Investment i.e., Apollo Investment and Chegg go up and down completely randomly.
Pair Corralation between Apollo Investment and Chegg
If you would invest 0.00 in Chegg Inc on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Chegg Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Apollo Investment Corp vs. Chegg Inc
Performance |
| Timeline |
| Apollo Investment Corp |
| Chegg Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Apollo Investment and Chegg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Chegg
The main advantage of trading using opposite Apollo Investment and Chegg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Chegg 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 Chegg will offset losses from the drop in Chegg's long position.| Apollo Investment vs. Zoom Video Communications | Apollo Investment vs. MTY Food Group | Apollo Investment vs. Charter Communications | Apollo Investment vs. Highlight Communications AG |
| Chegg vs. Jacquet Metal Service | Chegg vs. Waste Management | Chegg vs. Brockhaus Capital Management | Chegg vs. Sims Metal Management |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |