Correlation Between Apollo Investment and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Citic Telecom 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 Citic Telecom 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 Citic Telecom International, you can compare the effects of market volatilities on Apollo Investment and Citic Telecom 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 Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Citic Telecom.
Diversification Opportunities for Apollo Investment and Citic Telecom
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Citic is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Citic Telecom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Telecom Intern 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 Citic Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Telecom Intern has no effect on the direction of Apollo Investment i.e., Apollo Investment and Citic Telecom go up and down completely randomly.
Pair Corralation between Apollo Investment and Citic Telecom
Assuming the 90 days trading horizon Apollo Investment is expected to generate 5.77 times less return on investment than Citic Telecom. But when comparing it to its historical volatility, Apollo Investment Corp is 5.84 times less risky than Citic Telecom. It trades about 0.08 of its potential returns per unit of risk. Citic Telecom International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.91 in Citic Telecom International on September 13, 2024 and sell it today you would earn a total of 23.09 from holding Citic Telecom International or generate 590.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Citic Telecom International
Performance |
| Timeline |
| Apollo Investment Corp |
| Citic Telecom Intern |
Apollo Investment and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Citic Telecom
The main advantage of trading using opposite Apollo Investment and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Citic Telecom 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 Citic Telecom will offset losses from the drop in Citic Telecom'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 |
| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |