Correlation Between Apollo Investment and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and HUDSON GLOBAL 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 HUDSON GLOBAL 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 HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on Apollo Investment and HUDSON GLOBAL 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 HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and HUDSON GLOBAL.
Diversification Opportunities for Apollo Investment and HUDSON GLOBAL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and HUDSON is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL 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 HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of Apollo Investment i.e., Apollo Investment and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between Apollo Investment and HUDSON GLOBAL
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.41 times more return on investment than HUDSON GLOBAL. However, Apollo Investment Corp is 2.44 times less risky than HUDSON GLOBAL. It trades about 0.08 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about -0.02 per unit of risk. If you would invest 971.00 in Apollo Investment Corp on September 2, 2024 and sell it today you would earn a total of 355.00 from holding Apollo Investment Corp or generate 36.56% 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. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| Apollo Investment Corp |
| HUDSON GLOBAL INCDL |
Apollo Investment and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and HUDSON GLOBAL
The main advantage of trading using opposite Apollo Investment and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| Apollo Investment vs. Charter Communications | Apollo Investment vs. Data3 Limited | Apollo Investment vs. Hyrican Informationssysteme Aktiengesellschaft | Apollo Investment vs. DATAGROUP SE |
| HUDSON GLOBAL vs. EAGLE MATERIALS | HUDSON GLOBAL vs. Materialise NV | HUDSON GLOBAL vs. Applied Materials | HUDSON GLOBAL vs. PLAYWAY SA ZY 10 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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