Correlation Between Apollo Investment and AGRICUL BK
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and AGRICUL BK 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 AGRICUL BK 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 AGRICUL BK CHINA H , you can compare the effects of market volatilities on Apollo Investment and AGRICUL BK 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 AGRICUL BK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and AGRICUL BK.
Diversification Opportunities for Apollo Investment and AGRICUL BK
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and AGRICUL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and AGRICUL BK CHINA H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICUL BK CHINA 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 AGRICUL BK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICUL BK CHINA has no effect on the direction of Apollo Investment i.e., Apollo Investment and AGRICUL BK go up and down completely randomly.
Pair Corralation between Apollo Investment and AGRICUL BK
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.65 times more return on investment than AGRICUL BK. However, Apollo Investment Corp is 1.54 times less risky than AGRICUL BK. It trades about 0.23 of its potential returns per unit of risk. AGRICUL BK CHINA H is currently generating about 0.01 per unit of risk. If you would invest 1,251 in Apollo Investment Corp on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Apollo Investment Corp or generate 6.87% 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. AGRICUL BK CHINA H
Performance |
| Timeline |
| Apollo Investment Corp |
| AGRICUL BK CHINA |
Apollo Investment and AGRICUL BK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and AGRICUL BK
The main advantage of trading using opposite Apollo Investment and AGRICUL BK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, AGRICUL BK 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 AGRICUL BK will offset losses from the drop in AGRICUL BK's long position.| Apollo Investment vs. Macquarie Group Limited | Apollo Investment vs. MSCI Inc | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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