Correlation Between Apollo Investment and QIIWI GAMES
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and QIIWI GAMES 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 QIIWI GAMES 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 QIIWI GAMES AB, you can compare the effects of market volatilities on Apollo Investment and QIIWI GAMES 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 QIIWI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and QIIWI GAMES.
Diversification Opportunities for Apollo Investment and QIIWI GAMES
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and QIIWI is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and QIIWI GAMES AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QIIWI GAMES AB 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 QIIWI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QIIWI GAMES AB has no effect on the direction of Apollo Investment i.e., Apollo Investment and QIIWI GAMES go up and down completely randomly.
Pair Corralation between Apollo Investment and QIIWI GAMES
Assuming the 90 days trading horizon Apollo Investment is expected to generate 57.7 times less return on investment than QIIWI GAMES. But when comparing it to its historical volatility, Apollo Investment Corp is 7.76 times less risky than QIIWI GAMES. It trades about 0.05 of its potential returns per unit of risk. QIIWI GAMES AB is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 20.00 in QIIWI GAMES AB on September 21, 2024 and sell it today you would earn a total of 10.00 from holding QIIWI GAMES AB or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. QIIWI GAMES AB
Performance |
| Timeline |
| Apollo Investment Corp |
| QIIWI GAMES AB |
Apollo Investment and QIIWI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and QIIWI GAMES
The main advantage of trading using opposite Apollo Investment and QIIWI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, QIIWI GAMES 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 QIIWI GAMES will offset losses from the drop in QIIWI GAMES's long position.| Apollo Investment vs. T MOBILE US | Apollo Investment vs. AVITA Medical | Apollo Investment vs. CVR Medical Corp | Apollo Investment vs. Compugroup Medical SE |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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