Correlation Between Apollo Investment and Britvic Plc
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Britvic Plc 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 Britvic Plc 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 Britvic plc, you can compare the effects of market volatilities on Apollo Investment and Britvic Plc 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 Britvic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Britvic Plc.
Diversification Opportunities for Apollo Investment and Britvic Plc
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Britvic is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Britvic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Britvic plc 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 Britvic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Britvic plc has no effect on the direction of Apollo Investment i.e., Apollo Investment and Britvic Plc go up and down completely randomly.
Pair Corralation between Apollo Investment and Britvic Plc
Assuming the 90 days trading horizon Apollo Investment is expected to generate 2.91 times less return on investment than Britvic Plc. But when comparing it to its historical volatility, Apollo Investment Corp is 1.6 times less risky than Britvic Plc. It trades about 0.06 of its potential returns per unit of risk. Britvic plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 950.00 in Britvic plc on September 12, 2024 and sell it today you would earn a total of 590.00 from holding Britvic plc or generate 62.11% 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. Britvic plc
Performance |
| Timeline |
| Apollo Investment Corp |
| Britvic plc |
Apollo Investment and Britvic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Britvic Plc
The main advantage of trading using opposite Apollo Investment and Britvic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Britvic Plc 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 Britvic Plc will offset losses from the drop in Britvic Plc'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 |
| Britvic Plc vs. Sunstone Hotel Investors | Britvic Plc vs. INTERCONT HOTELS | Britvic Plc vs. Xenia Hotels Resorts | Britvic Plc vs. ADRIATIC METALS LS 013355 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |