Correlation Between Apollo Investment and Embotelladora Andina
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Embotelladora Andina 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 Embotelladora Andina 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 Embotelladora Andina SA, you can compare the effects of market volatilities on Apollo Investment and Embotelladora Andina 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 Embotelladora Andina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Embotelladora Andina.
Diversification Opportunities for Apollo Investment and Embotelladora Andina
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and Embotelladora is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Embotelladora Andina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embotelladora Andina 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 Embotelladora Andina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embotelladora Andina has no effect on the direction of Apollo Investment i.e., Apollo Investment and Embotelladora Andina go up and down completely randomly.
Pair Corralation between Apollo Investment and Embotelladora Andina
Assuming the 90 days trading horizon Apollo Investment is expected to generate 1.26 times less return on investment than Embotelladora Andina. But when comparing it to its historical volatility, Apollo Investment Corp is 2.06 times less risky than Embotelladora Andina. It trades about 0.08 of its potential returns per unit of risk. Embotelladora Andina SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Embotelladora Andina SA on September 13, 2024 and sell it today you would earn a total of 579.00 from holding Embotelladora Andina SA or generate 56.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Embotelladora Andina SA
Performance |
| Timeline |
| Apollo Investment Corp |
| Embotelladora Andina |
Apollo Investment and Embotelladora Andina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Embotelladora Andina
The main advantage of trading using opposite Apollo Investment and Embotelladora Andina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Embotelladora Andina 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 Embotelladora Andina will offset losses from the drop in Embotelladora Andina's long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| Embotelladora Andina vs. GigaMedia | Embotelladora Andina vs. QINGCI GAMES INC | Embotelladora Andina vs. GAMESTOP | Embotelladora Andina vs. ALGOMA STEEL GROUP |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |