Correlation Between Apollo Investment and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and ANGANG STEEL 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 ANGANG STEEL 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 ANGANG STEEL H , you can compare the effects of market volatilities on Apollo Investment and ANGANG STEEL 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 ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and ANGANG STEEL.
Diversification Opportunities for Apollo Investment and ANGANG STEEL
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and ANGANG is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H 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 ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of Apollo Investment i.e., Apollo Investment and ANGANG STEEL go up and down completely randomly.
Pair Corralation between Apollo Investment and ANGANG STEEL
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.34 times more return on investment than ANGANG STEEL. However, Apollo Investment Corp is 2.96 times less risky than ANGANG STEEL. It trades about 0.18 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about -0.01 per unit of risk. If you would invest 1,203 in Apollo Investment Corp on November 6, 2024 and sell it today you would earn a total of 140.00 from holding Apollo Investment Corp or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Apollo Investment Corp vs. ANGANG STEEL H
Performance |
| Timeline |
| Apollo Investment Corp |
| ANGANG STEEL H |
Apollo Investment and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and ANGANG STEEL
The main advantage of trading using opposite Apollo Investment and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL'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 |
| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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