Correlation Between Apollo Investment and TTW Public
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and TTW Public 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 TTW Public 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 TTW Public, you can compare the effects of market volatilities on Apollo Investment and TTW Public 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 TTW Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and TTW Public.
Diversification Opportunities for Apollo Investment and TTW Public
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and TTW is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and TTW Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTW Public 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 TTW Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTW Public has no effect on the direction of Apollo Investment i.e., Apollo Investment and TTW Public go up and down completely randomly.
Pair Corralation between Apollo Investment and TTW Public
Assuming the 90 days trading horizon Apollo Investment Corp is expected to under-perform the TTW Public. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Investment Corp is 1.84 times less risky than TTW Public. The stock trades about -0.01 of its potential returns per unit of risk. The TTW Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 22.00 in TTW Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding TTW Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. TTW Public
Performance |
| Timeline |
| Apollo Investment Corp |
| TTW Public |
Apollo Investment and TTW Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and TTW Public
The main advantage of trading using opposite Apollo Investment and TTW Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, TTW Public 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 TTW Public will offset losses from the drop in TTW Public's long position.| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp |
| TTW Public vs. SLR Investment Corp | TTW Public vs. Apollo Investment Corp | TTW Public vs. PennyMac Mortgage Investment | TTW Public vs. AOYAMA TRADING |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |