Correlation Between Apollo Investment and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on Apollo Investment and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and ARDAGH METAL.
Diversification Opportunities for Apollo Investment and ARDAGH METAL
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and ARDAGH is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of Apollo Investment i.e., Apollo Investment and ARDAGH METAL go up and down completely randomly.
Pair Corralation between Apollo Investment and ARDAGH METAL
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.35 times more return on investment than ARDAGH METAL. However, Apollo Investment Corp is 2.88 times less risky than ARDAGH METAL. It trades about 0.05 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.1 per unit of risk. If you would invest 1,306 in Apollo Investment Corp on October 25, 2024 and sell it today you would earn a total of 14.00 from holding Apollo Investment Corp or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| Apollo Investment Corp |
| ARDAGH METAL PACDL |
Apollo Investment and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and ARDAGH METAL
The main advantage of trading using opposite Apollo Investment and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| Apollo Investment vs. TreeHouse Foods | Apollo Investment vs. Cal Maine Foods | Apollo Investment vs. PRECISION DRILLING P | Apollo Investment vs. CENTURIA OFFICE REIT |
| ARDAGH METAL vs. ELL ENVIRONHLDGS HD 0001 | ARDAGH METAL vs. GRUPO CARSO A1 | ARDAGH METAL vs. INTER CARS SA | ARDAGH METAL vs. CarsalesCom |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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