Correlation Between Apollo Investment and FAST RETAILCOSPHDR
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR 1, you can compare the effects of market volatilities on Apollo Investment and FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and FAST RETAILCOSPHDR.
Diversification Opportunities for Apollo Investment and FAST RETAILCOSPHDR
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and FAST is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and FAST RETAILCOSPHDR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAILCOSPHDR has no effect on the direction of Apollo Investment i.e., Apollo Investment and FAST RETAILCOSPHDR go up and down completely randomly.
Pair Corralation between Apollo Investment and FAST RETAILCOSPHDR
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.6 times more return on investment than FAST RETAILCOSPHDR. However, Apollo Investment Corp is 1.68 times less risky than FAST RETAILCOSPHDR. It trades about 0.36 of its potential returns per unit of risk. FAST RETAILCOSPHDR 1 is currently generating about 0.1 per unit of risk. If you would invest 1,208 in Apollo Investment Corp on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Apollo Investment Corp or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. FAST RETAILCOSPHDR 1
Performance |
| Timeline |
| Apollo Investment Corp |
| FAST RETAILCOSPHDR |
Apollo Investment and FAST RETAILCOSPHDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and FAST RETAILCOSPHDR
The main advantage of trading using opposite Apollo Investment and FAST RETAILCOSPHDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR will offset losses from the drop in FAST RETAILCOSPHDR's long position.| Apollo Investment vs. USWE SPORTS AB | Apollo Investment vs. PARKEN Sport Entertainment | Apollo Investment vs. SPORTING | Apollo Investment vs. Transport International Holdings |
| FAST RETAILCOSPHDR vs. Zurich Insurance Group | FAST RETAILCOSPHDR vs. Jacquet Metal Service | FAST RETAILCOSPHDR vs. Evolution Mining Limited | FAST RETAILCOSPHDR vs. Direct Line Insurance |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |