Correlation Between Apollo Investment and Highlight Communications
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Highlight Communications 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 Highlight Communications 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 Highlight Communications AG, you can compare the effects of market volatilities on Apollo Investment and Highlight Communications 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 Highlight Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Highlight Communications.
Diversification Opportunities for Apollo Investment and Highlight Communications
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and Highlight is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Highlight Communications AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlight Communications 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 Highlight Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlight Communications has no effect on the direction of Apollo Investment i.e., Apollo Investment and Highlight Communications go up and down completely randomly.
Pair Corralation between Apollo Investment and Highlight Communications
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.53 times more return on investment than Highlight Communications. However, Apollo Investment Corp is 1.88 times less risky than Highlight Communications. It trades about 0.07 of its potential returns per unit of risk. Highlight Communications AG is currently generating about -0.08 per unit of risk. If you would invest 841.00 in Apollo Investment Corp on September 14, 2024 and sell it today you would earn a total of 451.00 from holding Apollo Investment Corp or generate 53.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Highlight Communications AG
Performance |
| Timeline |
| Apollo Investment Corp |
| Highlight Communications |
Apollo Investment and Highlight Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Highlight Communications
The main advantage of trading using opposite Apollo Investment and Highlight Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Highlight Communications 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 Highlight Communications will offset losses from the drop in Highlight Communications' long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| Highlight Communications vs. The Walt Disney | Highlight Communications vs. Charter Communications | Highlight Communications vs. Warner Music Group | Highlight Communications vs. Superior Plus Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |