Correlation Between Apollo Investment and National Storage
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and National Storage 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 Storage 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 Storage Affiliates, you can compare the effects of market volatilities on Apollo Investment and National Storage 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 Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and National Storage.
Diversification Opportunities for Apollo Investment and National Storage
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and National is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Apollo Investment i.e., Apollo Investment and National Storage go up and down completely randomly.
Pair Corralation between Apollo Investment and National Storage
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.7 times more return on investment than National Storage. However, Apollo Investment Corp is 1.42 times less risky than National Storage. It trades about 0.07 of its potential returns per unit of risk. National Storage Affiliates is currently generating about 0.04 per unit of risk. If you would invest 1,117 in Apollo Investment Corp on November 7, 2024 and sell it today you would earn a total of 226.00 from holding Apollo Investment Corp or generate 20.23% 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. National Storage Affiliates
Performance |
| Timeline |
| Apollo Investment Corp |
| National Storage Aff |
Apollo Investment and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and National Storage
The main advantage of trading using opposite Apollo Investment and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, National Storage 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 Storage will offset losses from the drop in National Storage's long position.| Apollo Investment vs. FAST RETAIL ADR | Apollo Investment vs. Fast Retailing Co | Apollo Investment vs. Universal Health Realty | Apollo Investment vs. Retail Estates NV |
| National Storage vs. The Trade Desk | National Storage vs. Salesforce | National Storage vs. Yanzhou Coal Mining | National Storage vs. TRADEDOUBLER AB SK |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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