Correlation Between Apollo Investment and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and MYFAIR GOLD 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 MYFAIR GOLD 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 MYFAIR GOLD P, you can compare the effects of market volatilities on Apollo Investment and MYFAIR GOLD 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 MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and MYFAIR GOLD.
Diversification Opportunities for Apollo Investment and MYFAIR GOLD
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and MYFAIR is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P 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 MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of Apollo Investment i.e., Apollo Investment and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between Apollo Investment and MYFAIR GOLD
Assuming the 90 days trading horizon Apollo Investment Corp is expected to under-perform the MYFAIR GOLD. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Investment Corp is 2.77 times less risky than MYFAIR GOLD. The stock trades about 0.0 of its potential returns per unit of risk. The MYFAIR GOLD P is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 126.00 in MYFAIR GOLD P on September 3, 2024 and sell it today you would lose (5.00) from holding MYFAIR GOLD P or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. MYFAIR GOLD P
Performance |
| Timeline |
| Apollo Investment Corp |
| MYFAIR GOLD P |
Apollo Investment and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and MYFAIR GOLD
The main advantage of trading using opposite Apollo Investment and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD'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 |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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