Correlation Between Apollo Investment and G III
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on Apollo Investment and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and G III.
Diversification Opportunities for Apollo Investment and G III
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and GI4 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Apollo Investment i.e., Apollo Investment and G III go up and down completely randomly.
Pair Corralation between Apollo Investment and G III
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.33 times more return on investment than G III. However, Apollo Investment Corp is 3.01 times less risky than G III. It trades about 0.37 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.24 per unit of risk. If you would invest 1,307 in Apollo Investment Corp on November 27, 2024 and sell it today you would earn a total of 82.00 from holding Apollo Investment Corp or generate 6.27% 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. G III Apparel Group
Performance |
| Timeline |
| Apollo Investment Corp |
| G III Apparel |
Apollo Investment and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and G III
The main advantage of trading using opposite Apollo Investment and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Apollo Investment vs. BROADPEAK SA EO | Apollo Investment vs. Jacquet Metal Service | Apollo Investment vs. Gaztransport et technigaz | Apollo Investment vs. Air Transport Services |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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