Correlation Between Apollo Investment and Amneal Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Amneal Pharmaceuticals 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 Amneal Pharmaceuticals 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 Amneal Pharmaceuticals, you can compare the effects of market volatilities on Apollo Investment and Amneal Pharmaceuticals 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 Amneal Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Amneal Pharmaceuticals.
Diversification Opportunities for Apollo Investment and Amneal Pharmaceuticals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and Amneal is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Amneal Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amneal Pharmaceuticals 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 Amneal Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amneal Pharmaceuticals has no effect on the direction of Apollo Investment i.e., Apollo Investment and Amneal Pharmaceuticals go up and down completely randomly.
Pair Corralation between Apollo Investment and Amneal Pharmaceuticals
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.32 times more return on investment than Amneal Pharmaceuticals. However, Apollo Investment Corp is 3.1 times less risky than Amneal Pharmaceuticals. It trades about 0.0 of its potential returns per unit of risk. Amneal Pharmaceuticals is currently generating about -0.07 per unit of risk. If you would invest 1,268 in Apollo Investment Corp on September 22, 2024 and sell it today you would earn a total of 0.00 from holding Apollo Investment Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Amneal Pharmaceuticals
Performance |
| Timeline |
| Apollo Investment Corp |
| Amneal Pharmaceuticals |
Apollo Investment and Amneal Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Amneal Pharmaceuticals
The main advantage of trading using opposite Apollo Investment and Amneal Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Amneal Pharmaceuticals 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 Amneal Pharmaceuticals will offset losses from the drop in Amneal Pharmaceuticals' long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| Amneal Pharmaceuticals vs. Wizz Air Holdings | Amneal Pharmaceuticals vs. Chuangs China Investments | Amneal Pharmaceuticals vs. Apollo Investment Corp | Amneal Pharmaceuticals vs. Alaska Air Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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