Correlation Between Apollo Investment and National Beverage
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and National Beverage 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 National Beverage 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 National Beverage Corp, you can compare the effects of market volatilities on Apollo Investment and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and National Beverage.
Diversification Opportunities for Apollo Investment and National Beverage
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Apollo Investment i.e., Apollo Investment and National Beverage go up and down completely randomly.
Pair Corralation between Apollo Investment and National Beverage
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.92 times more return on investment than National Beverage. However, Apollo Investment Corp is 1.09 times less risky than National Beverage. It trades about -0.1 of its potential returns per unit of risk. National Beverage Corp is currently generating about -0.35 per unit of risk. If you would invest 1,292 in Apollo Investment Corp on October 12, 2024 and sell it today you would lose (28.00) from holding Apollo Investment Corp or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. National Beverage Corp
Performance |
| Timeline |
| Apollo Investment Corp |
| National Beverage Corp |
Apollo Investment and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and National Beverage
The main advantage of trading using opposite Apollo Investment and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Apollo Investment vs. X FAB Silicon Foundries | Apollo Investment vs. AIR PRODCHEMICALS | Apollo Investment vs. SILICON LABORATOR | Apollo Investment vs. China BlueChemical |
| National Beverage vs. BURLINGTON STORES | National Beverage vs. Calibre Mining Corp | National Beverage vs. GREENX METALS LTD | National Beverage vs. ADRIATIC METALS LS 013355 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |