Correlation Between Apollo Investment and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Apollo Investment and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Jacquet Metal.
Diversification Opportunities for Apollo Investment and Jacquet Metal
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and Jacquet is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Apollo Investment i.e., Apollo Investment and Jacquet Metal go up and down completely randomly.
Pair Corralation between Apollo Investment and Jacquet Metal
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.88 times more return on investment than Jacquet Metal. However, Apollo Investment Corp is 1.14 times less risky than Jacquet Metal. It trades about 0.39 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.06 per unit of risk. If you would invest 1,218 in Apollo Investment Corp on September 4, 2024 and sell it today you would earn a total of 124.00 from holding Apollo Investment Corp or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apollo Investment Corp vs. Jacquet Metal Service
Performance |
| Timeline |
| Apollo Investment Corp |
| Jacquet Metal Service |
Apollo Investment and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Jacquet Metal
The main advantage of trading using opposite Apollo Investment and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal'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 |
| Jacquet Metal vs. HF SINCLAIR P | Jacquet Metal vs. Enter Air SA | Jacquet Metal vs. FUYO GENERAL LEASE | Jacquet Metal vs. Autohome ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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