Correlation Between Apollo Investment and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and HF SINCLAIR 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 HF SINCLAIR 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 HF SINCLAIR P, you can compare the effects of market volatilities on Apollo Investment and HF SINCLAIR 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 HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and HF SINCLAIR.
Diversification Opportunities for Apollo Investment and HF SINCLAIR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and HL80 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Apollo Investment i.e., Apollo Investment and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Apollo Investment and HF SINCLAIR
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.53 times more return on investment than HF SINCLAIR. However, Apollo Investment Corp is 1.88 times less risky than HF SINCLAIR. It trades about 0.26 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.1 per unit of risk. If you would invest 1,195 in Apollo Investment Corp on September 4, 2024 and sell it today you would earn a total of 147.00 from holding Apollo Investment Corp or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Apollo Investment Corp vs. HF SINCLAIR P
Performance |
| Timeline |
| Apollo Investment Corp |
| HF SINCLAIR P |
Apollo Investment and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and HF SINCLAIR
The main advantage of trading using opposite Apollo Investment and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings |
| HF SINCLAIR vs. MCEWEN MINING INC | HF SINCLAIR vs. Wayside Technology Group | HF SINCLAIR vs. GALENA MINING LTD | HF SINCLAIR vs. Vishay Intertechnology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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