Correlation Between Apollo Investment and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and FUTURE GAMING 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 FUTURE GAMING 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 FUTURE GAMING GRP, you can compare the effects of market volatilities on Apollo Investment and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and FUTURE GAMING.
Diversification Opportunities for Apollo Investment and FUTURE GAMING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and FUTURE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Apollo Investment i.e., Apollo Investment and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Apollo Investment and FUTURE GAMING
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.34 times more return on investment than FUTURE GAMING. However, Apollo Investment Corp is 2.96 times less risky than FUTURE GAMING. It trades about 0.0 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.03 per unit of risk. If you would invest 1,287 in Apollo Investment Corp on September 24, 2024 and sell it today you would lose (3.00) from holding Apollo Investment Corp or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Apollo Investment Corp vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Apollo Investment Corp |
| FUTURE GAMING GRP |
Apollo Investment and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and FUTURE GAMING
The main advantage of trading using opposite Apollo Investment and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Apollo Investment vs. Nissan Chemical Corp | Apollo Investment vs. Harmony Gold Mining | Apollo Investment vs. TRI CHEMICAL LABORATINC | Apollo Investment vs. International Consolidated Airlines |
| FUTURE GAMING vs. Apollo Investment Corp | FUTURE GAMING vs. Gladstone Investment | FUTURE GAMING vs. ARROW ELECTRONICS | FUTURE GAMING vs. Chuangs China Investments |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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