Correlation Between Apollo Investment and MedMira
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and MedMira 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 MedMira 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 MedMira, you can compare the effects of market volatilities on Apollo Investment and MedMira 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 MedMira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and MedMira.
Diversification Opportunities for Apollo Investment and MedMira
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and MedMira is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and MedMira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedMira 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 MedMira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MedMira has no effect on the direction of Apollo Investment i.e., Apollo Investment and MedMira go up and down completely randomly.
Pair Corralation between Apollo Investment and MedMira
Assuming the 90 days trading horizon Apollo Investment is expected to generate 5.53 times less return on investment than MedMira. But when comparing it to its historical volatility, Apollo Investment Corp is 7.38 times less risky than MedMira. It trades about 0.07 of its potential returns per unit of risk. MedMira is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5.55 in MedMira on September 3, 2024 and sell it today you would earn a total of 0.95 from holding MedMira or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. MedMira
Performance |
| Timeline |
| Apollo Investment Corp |
| MedMira |
Apollo Investment and MedMira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and MedMira
The main advantage of trading using opposite Apollo Investment and MedMira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, MedMira 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 MedMira will offset losses from the drop in MedMira's long position.| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp |
| MedMira vs. Vastned Retail NV | MedMira vs. Tsingtao Brewery | MedMira vs. JIAHUA STORES | MedMira vs. THAI BEVERAGE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |