Correlation Between Apollo Investment and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on Apollo Investment and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and COSMOSTEEL HLDGS.
Diversification Opportunities for Apollo Investment and COSMOSTEEL HLDGS
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and COSMOSTEEL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of Apollo Investment i.e., Apollo Investment and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between Apollo Investment and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.44 times more return on investment than COSMOSTEEL HLDGS. However, Apollo Investment Corp is 2.3 times less risky than COSMOSTEEL HLDGS. It trades about 0.07 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.01 per unit of risk. If you would invest 883.00 in Apollo Investment Corp on November 6, 2024 and sell it today you would earn a total of 460.00 from holding Apollo Investment Corp or generate 52.1% 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. COSMOSTEEL HLDGS
Performance |
| Timeline |
| Apollo Investment Corp |
| COSMOSTEEL HLDGS |
Apollo Investment and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and COSMOSTEEL HLDGS
The main advantage of trading using opposite Apollo Investment and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| Apollo Investment vs. Samsung Electronics Co | Apollo Investment vs. STEEL DYNAMICS | Apollo Investment vs. Renesas Electronics | Apollo Investment vs. Delta Electronics Public |
| COSMOSTEEL HLDGS vs. Harmony Gold Mining | COSMOSTEEL HLDGS vs. De Grey Mining | COSMOSTEEL HLDGS vs. Monument Mining Limited | COSMOSTEEL HLDGS vs. MAGNUM MINING EXP |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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